2000 (10) TMI 96

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f the armed forces and their families. The CSD, in view of the peculiar nature of its customers and the location, of which most are in remote border areas, asked the appellant to sort and pack the goods in the manner that would attract its customers. For example a carton of lipsticks would be ordinarily sold containing 12 lipsticks of one colour. In the case of CSD, however, a carton contained 12 assorted colours of lipsticks. Similarly a case of shampoo sold to the CSD consists of mixed varieties for dry, oily and regular hair, unlike shampoo sold to other customers, where each carton contains only one variety. 2. The goods marketed by the appellants include not only those manufactured by it, but also of goods which it purchased from oth .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... factured. 4. One of the meaning of the word 'rendering' the one that would obviously apply, to the phrase of the note under consideration is "cause to be or become; make of a certain nature, quality, condition etc." (New Shorter Oxford English Dictionary). From this meaning and indeed by common usage of this word, it is only the treatment which makes a product marketable to the consumer which was so rendered. That is to say, the process to fall within the scope of the "any other treatment" it must be one which confers upon a product the attributes of marketability which it did not possess earlier. We must note here the significance of the word 'consumer' in the note. Thus the product must be referred to must be rendered marketable to the c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... appellant also did not involve any treatment of the goods, or of an individual retail pack. It merely consists of transferring them from one kind of retail pack to another. 6. The Commissioner, before whom these arguments were advanced has said that it is the value addition resulting from the repacking that it attempted to be taxed. A mere addition to value of goods does not by itself amount to manufacture. For that purpose it must fall within the legal definition of manufacture. Apart from that there was no value addition in fact. The appellant sell the goods to the CSD at a price lower than the price at which it sells the goods to the other customers, for two reasons, that CSD was a large and continuing customer, and that sales to it we .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X