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TMI Blog1979 (10) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... d shoes. Just as resoling of old shoes, does not produce a commercially different entity having a different identity, so from retreading no new or distinct article emerges. The old tyre retains its basic structure and identity. The courts below were therefore, right in holding that the lease in the present case was not for manufacturing purposes, and the tenancy had been rightly terminated by thirty days notice. Appeal dismissed. - 1722 (N) of 1969 - - - Dated:- 16-10-1979 - R.S. Sarkaria and C. Chinnappa Reddy, JJ. [Judgment per : Sarkaria, J.]. - Whether a lease of a premises for carrying on the business of retreading of tyres is a lease for "manufacturing purposes" within the contemplation of Section 106, Transfer of Property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, is not a manufacturing purpose and, therefore, 30 days' notice given by the plaintiff to the defendant for terminating his tenancy, was valid. 5. Mr. Khadar, learned counsel for the defendant-appellant, contends that the process of retreading old tyres, involves the use of sophisticated machinery and results in bringing into being a distinct commercial commodity. It is argued that the essential test of a manufacturing process is that it must bring about a change in the character, quality or user of the old material processed so as to produce a distinct marketable article, but it is not necessary that the old material should completely lose its identity. It is urged that the High Court was in error in taking the view that from the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion for consideration before this Court was whether the lease in favour of Allenbury Engineers was for "manufacturing purposes" within the meaning of Section 106, Transfer of Property Act. On the facts of that case, answering the question in the negative, this Court held that even though the lessees were manufacturing some spare parts for repairing or reconditioning vehicles, yet the dominant purpose of the lease was one of the storage and resale of the vehicles after repairing and reconditioning them; and that manufacturing of spare parts was merely incidental to the main purpose of repairing or reconditioning the vehicles for disposal. 7. Since the instant case is covered by the ratio of Allenbury Engineers it is not necessary to di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which it is made", observed : "The first and, it may be thought, the decisive question in the case, is therefore whether the garments which result from the process of remodelling are different things, that is they are different goods, from the garments that the customer hands over. This perhaps is rather a question of fact than of law.....The Commissioner distinguishes between repair and remodelling and does not claim sales tax in respect of repair even although it may mean some change in, for example, the length of the garment. We are told that an old or worn fur coat is remodelled into a modern style of coat, that a fur necklet is remodelled into a stole and a fur necklet or fur stole is remodelled into a cape. A full length fur coat ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as having altered an existing thing without producing a new one. He has made a different article." 9. Williams J., agreed with Dixon J., that the question at issue was one of fact and degree, and that the process concerned involved manufacture of goods into different goods from their second-hand components. The learned Judge rejected the argument on behalf of the taxpayers that the work could be described as a mere repair or modification of the goods which did not affect their original character, with the observation that "once the work done causes the goods to lose this character they become `goods' within the meaning of the Act." 10. It will be seen that Jack Zinader's case bears no analogy with the present case. The facts of that ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and identity. The courts below were therefore, right in holding that the lease in the present case was not for manufacturing purposes, and the tenancy had been rightly terminated by thirty days notice. 11. Before parting with this judgment, we may sound a note of caution, that definitions of "manufacture" given in other enactments, such as, in the Factories Act or the Excise Act should not be blindly applied while interpreting the expression "manufacturing purposes" in Section 106 of the Transfer of Property Act. In some enactments, for instance in the Excise Act, the term "manufacture" has been given an extended meaning by including in it "repairs" also. 12. For the foregoing reasons, the appeal fails and is dismissed with costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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