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TMI Blog1980 (5) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... alid licence issued by the Central Excise Department to use the approved trade labels on the matches manufactured in his factory. He is himself a resident of 91, Kammalar Street, Tiruvannamalai. On certain information that the accused is engaged in manufacture of matches and is running a mini match factory without a valid licence to do so at his residence, the officers of the Counsel proceeded to the residence of the accused on 29-9-1975. The door which was locked outside was opened by an employee and they noticed that "a part of manufacture of matches" was carried on by three children and a woman Rukmani who is the wife of an employee of the accused, in Mohan Match Factory. The match boxes were found to be in labelling and packing stages. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of being ignited by striking, each such head shall be deemed to be a match ". It is therefore, contended for the respondent by his learned Counsel that a match stick with a match head shall be deemed to be a `match' and once when the manufacture of match stick with match head is complete, the manufacture of a 'match' is complete and packing them in the boxes is not a process of manufacture and even if the employees of the accused were packing match sticks in boxes, the accused would not be guilty of the offence with which he is charged. He derives support from the fact that duty is payable on the match and not on match boxes with match sticks. The rate of duty as seen from Tariff Item No. 38 is "65 paise for every thousand matches or frac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... klets which are issued by the manufacturers for home consumption shall be packed in boxes containing on the average 50 sticks." (Proviso omitted). In my view until all the processes, incidental or ancillary, have been completed, one cannot say that a product has been manufactured. In other words, the definition of "manufacture" in Section 2(f) of the Act suggests that the process which is regarded as incidental or ancillary must have some relation to the manufacture of the finished product. For example, in the case referred to, the packing of glass and glassware is not a process incidental or ancillary to the completion of manufacture, for the glassware could be taken delivery of in the buyers' own packing materials like baskets or boxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not merely to facilitate easy counting of matches that they are packed in boxes, nor is it done as a matter of convenience to facilitate delivery. It is done because the rule requires it. In my view, the test is whether such excisable goods as 'match' can be used without being packed in a box and without the sides of the box being painted for striking the 'match'. If that could be done, then packing in boxes cannot be considered as a process of manufacture. But if packing in a box has some direct relation to the manufacture of that product called 'match', there, in my view, packing of 'match' in boxes is a process which is incidental or ancillary to the completion of the manufactured product so as to come within the purview of the expre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccused and withdrew it later. He also admitted that he was not on terms with the accused, but would later say that he is on friendly terms with the accused now. The evidence of such a witness is not entitled to any weight. P.W. 4 proved Ex. P-5, the statement of the accused. But the accused states that that statement, Ex. P.5, was taken under compulsion. The accused also states in his statement under Section 313, Cr.P.C. that Rukmani is not the wife of the foreman of the factory. The defence in the case is that the goods found in his house were duty paid. Ex. D-1, the credit bill, shows that duty has been paid on the stock. It is in evidence of P.W. 2 that there is no prohibition to take duty paid goods from the licensed premises to any non ..... X X X X Extracts X X X X X X X X Extracts X X X X
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