TMI Blog1991 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts covered under Heading 25.01 to 25.05 constitutes manufacture . However, Section 2(f) as it stood prior to 28-2-1986 defined the expression manufacture in an inclusive manner and included any process incidental or ancillary to the completion of a manufactured product. In the absence of any statutory definition, the expression manufacture was interpreted by the Supreme Court on the basis of dictionary meanings in several judgments to mean, to bring into existence a new commercial commodity having a distinctive name, characteristics and use. 6. The interpretation as based on Section 2(f) was in consonance with Entry 84 of the Union s list of the Constitution of India. 7. However, with effect from 28-2-1986, the definition has been substituted by Section 4 of the Central Excise Tariff Act, 1985 which reads as follows :- (f) Manufacture" includes any process - (i) incidental or ancillary to the completion of a manufactured product; and , (ii) which is specified in relation to any grade in the Section or Chapter Notes of the Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture;....." Therefore, by an artificially extended definition of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi Cloth and General Mills Company Limited and Others reported in 1977 (1) J 199 Para 14. 15. 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 a distinctive name, character or use. 16. Now the item under reference is lime fine. The raw material used is lime stone. The process of conversion is as follows :- (1) Lime stone is crushed in hammer mill of sinter plant and is converted into fines. This crushed lime stone is called the lime fines . The name of the raw material is lime stone whereas finished goods are named Lime fines . Hence, there is a distinct name. The characteristics of lime stone cannot be sintered whereas lime fine can be sintered. 17. The use is also distinct in respect of both the raw material and finished goods. Lime stone is used in the blast furnace directly whereas lime fine is used only in sintering. Further, lime fine is a known lime product in technology. Simplified flow sheet for lime and lime stone products enumerated in Encyclop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submissions of the learned counsel have a strong force. 23 The issue regarding manufacture is required to be considered in the light of Section 2(f) of Central Excises and Salt Act, 1944, read with the relevant provisions of the Tariff Act. 24. As such after introduction of Central Excise Tariff Act, 1985 manufacture includes any process - (i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the Section or Chapter Notes of the Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture". 25. Hence if the department proposes to rely upon any process mentioned in any of the Section Notes or the Chapter Notes, it is required to show that it has been specified therein as one amounting to manufacture. 26. In the instant case the department has relied on the Chapter Note 2 of Page 25. Undoubtedly it refers to products which have been ground, powdered, etc., but the processes involved in production thereof have not been specified as those amounting to manufacture. On the contrary as rightly pointed out by the learned counsel wherever the legislature intended that a particular process or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the following forms:- (a) Liquids and pastes, including dispensions (emulsions and suspensions) and solutions; (b) Blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms, and the conversion of any one primary form into another shall amount to manufacture . in Chapter Note 2 of Chapter 83 : In relation to sub-heading No. 8312.11, the process of lacquering or printing or both of plain containers shall amount to manufacture . 27. We find that there is no such deeming provision incorporated in the Chapter Note 2 of Chapter 25 relied upon by the department. 28. In the absence thereof the department was still at liberty to show that the process in a given case amounted to manufacture if it could show that it resulted into production or creation of a new material or brought into existence a new product known to the market as a distinct commodity. However, it is observed that the department has not produced any material evidence to this effect. 29. The department has drawn our attention to the order of CEGAT reported in 1985 (22) E.L.T. 109 (Tribunal). However, two points are required to be seen with reference t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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