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TMI Blog1973 (2) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... tself in printing and lacquering them. Printed and lacquered tubes and containers were sold by it in the market to their consumers. On 25th February, 1971 the petitioner received from the Superintendent of Central Excise, Baroda, the letter dated 24th February, 1971 enquiring whether the petitioner had stopped all operations relating to the manufacture of extruded aluminium pipes and tubes including incidental and ancillary process of printing and lacquering them. On 2nd March, 1971 the petitioner replied to the Superintendent of Central Excise and stated that no Central Excise licence was necessary for printing and/or lacquering duty paid extruded shapes and sections or tubes and pipes purchased by it from the market. It contended that no Central Excise duty was leviable on such printing and lacquering. The petitioner however stated that if the Superintendent of Central Excise did not accept the aforesaid view of the petitioner, he should hear the petitioner before taking any decision in the matter. On 22nd May, 1971, the petitioner received from the Superintendent of Central Excise notice dated 20th May, 1971 (hereinafter referred to 'the impugned notice') asking the petitioner t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a charging section. It provides for levy and collection of duties of excise on all excisable goods other than salt and on salt manufactured in, or imported by land into any part of India at the rates set forth in the First Schedule to the said Act. The expression "excisable goods" has been defined by clause (d) of Section 2 in the following terms: "'Excisable goods' means goods specified in the First Schedule as being subject to a duty of excise and includes salt." If a person produces "excisable goods" within the aforesaid meaning of that expression he has got to obtain a licence under Section 6 of the said Act. Section 3, sub-section (1) read with the definition of "excisable goods" given in clause (d) of Section 2, takes us to the First Schedule. Item 27 in the First Schedule specifies aluminium. Sub-item (e) specifies the following commodity: "Extruded shapes and sections including extruded pipes and tubes." The contention raised on behalf of the respondents is that printing and lacquering of duty paid plain extruded collapsible pipes and tubes of aluminium are covered by sub-item (e) of Item 27. The respondents have placed no reliance upon any other sub-item of Ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer of a plain extruded aluminium tube manufactured it. Printing and lacquering do not involve the process of forming a tube from a metal slug or dump which extrusion means. It is therefore clear that since printing and- lacquering of plain extruded tubes do not require application of any further process of extrusion, it cannot be covered by sub-item (e) of Item 27. Secondly by printing and lacquering plain extruded tubes, can the petitioners be said to manufacture aluminium tubes ? This is the second aspect which emerges from the analysis of sub-item (e) of Item 27. "Manufacture" has been defined by clause (f) of Section 2 in the following terms : "Manufacture" includes any process incidental or ancillary to the completion of a manufactured product ......" The tubes which the petitioners have been printing and lacquering were already manufactured by other manufacturers. Is the process of printing and lacquering them incidental or ancillary to the completion of manufacture of such a tube ? The definition of 'manufacture' given in clause (f) clearly suggests that any process before it is regarded an incidental or ancillary to the completion of a manufactured product must hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven in Section 2(f) of the said Act. It has laid down that word "manufacture" implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinctive name, character, or use. The said Act does not define goods. The Legislature therefore must be taken to have used every word in its ordinary dictionary meaning. The dictionary meaning is that to become "goods" it must be something which can be ordinary come to the market to be bought and sold and is known to the market. In other words a new substance must be brought into existence from raw materials. The test which the Supreme Court has therefore laid down is the test of distinctive name, character or use of the new substance which is brought into existence from materials. 12. In the instant case if we apply the aforesaid test we come to the inescapable conclusion that a printed and lacquered extruded aluminium tube does not have in relation to a plain extruded tube any distinctive name, or character use. Both can be used for the same purpose. Both enjoy the same character. Both bear the same name. The printed and lacquered extru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vanaspati under Items 12 and 13 of Schedule I to the said Act. It has been laid down in that decision that though manufacturing requires application of some sort of processes every processing cannot be equated to manufacture. Manufacture brings into existence, the Supreme Court has observed, a new substance and does not merely produce some change in substance, however minors in consequence it may be. This distinction has been brought out by the Supreme Court by relying upon the elaborate meaning of the expression "manufacture" given in permanent Edition of Words and Phrases, Volume 26. The passage quoted by the Supreme Court in that decision is in the following terms :- "'Manufacture' implies a change but every change is not manufacture, and yet every change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation, a new and different article must emerge having distinctive name, character of use." 15. The printing and the lacquering of plain extruded tubes no doubt mean some change in the form of that article but they do not bring into existence a new article or substance altogether. The tube remains a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lets and at the stage of manufacture of circles. The argument advanced on behalf of the manufacturer was turned down because Item 26A clearly disclosed the intention of the Legislature to levy central excise duty at both stages - on billets as well as on circles. This decision cited by Mr. Shelat does not help him in establishing his contention because we are unable to read in Item 27 any intention on the part of the Legislature to levy central excise duty both on the manufacture of plain extruded tubes and on the printing and lacquering of such extruded tubes. Whenever Legislature wanted to spread a wider sweep it has done so. Item 26A(2) furnishes one such instance by using the expression "in any form or size". Item 27(b) also furnishes an illustration of this type where the Legislature has used the expression "in any form or size" in respect of such manufactures as plates, sheets, circles and strips. Item 29A(3) used the expression "all sorts" in relation to parts of refrigerating and air-conditioning appliances and machinery. In a similar context sub-item (2) of Item 26B uses the expression "in any form or size". So also Item 26AA(ii) uses in a similar context the expression "a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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