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TMI Blog1982 (9) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee on the ground that the assessee was not engaged in the business of 'manufacture' or 'production' of any of the articles specified in the Ninth Schedule to the Act. On appeal, the AAC confirmed the order of the ITO. The assessee has, therefore, filed the present appeal. 3. Before me, the learned representative of the assessee contended that the laying down of pipes, after joining them together, tantamounted to 'manufacture' or 'production' of articles within the meaning of section 32(1)(vi). According to him, the long joint pipes resulting from the joining of the smaller pipes were different from their components, and since a new product emerged out of the original constituents, the process involved 'manufacture' or 'production' of ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur or machinery". According to Webster's Dictionary 'to manufacture' means "to work as raw or partly wrought materials into suitable forms for use". Thus, the expression 'manufacture' means the transformation or change of raw material into a changed form for use. It has been held by the Kerala High Court in the case of Casino (P.) Ltd. that the expression 'manufacture', in its ordinary meaning, is a process which results in an alteration or change in the good which are subject to manufacture. According to this authority, the real test is whether a commodity which, in commercial sense, is different from the raw material has resulted due to the manufacture. Now, in the present case, the assessee does not 'manufacture' or 'produce' pipes as su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould amount to manufacture. Evidently, the component parts which were assembled brought into existence a new and different article, i.e., an automobile which had its own entity. In the present case, the position is different. The component parts, i.e., pipes remain pipes even after being joined together. Thus, the authority cited by the assessee does not help the assessee. Similarly, the decision of the Tribunal in the case of ABC is of no avail to the assessee. In that case, the process of making sweet-meats from raw materials was held to be 'manufacture' of goods. There too, the new article which came into existence had its own identity, different from its components. As stated above, this is not so in the present case. I am, therefore, o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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