TMI Blog1979 (12) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods under the Central Excises and Salt Act, 1944 (hereinafter referred to as 'the Act'). Besides manufacturing its own lamps at its factory at Thana (Bombay), the petitioner also purchases electric lamps and tubes from Hind Lamps Limited (briefly stated as 'the company'), having its registered office and factory at Shikohabad. The said Company carries on business of manufacture and sale of electric bulbs, fluorescent lamps, miniature bulbs and components of its bulbs and lamps etc. At its factory at Shikohabad, the company sells lamps and tubes, referred to above to the petitioner and other leading Companies such as M/s. Bajaj Electricals Limited, Crompton Greaves Limited, General Electric Company of (India) Limited and Mazda Lamps Company. Sales of the goods by the Company to the petitioner and other customers, referred to above, is on principal to principal basis in the ordinary course of business. The Company manufactures goods according to its own schedule, budget, capacity, availability of raw materials supply of power and maximum supplies to customers, against their orders. The lamps manufactured by the Company are supplied to its various customers, including the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner filed the present writ petition challenging the said two notices dated December 10, 1975, and June 7, 1976 requiring the petitioner to obtain a licence. The petitioner's case was that the insistence of the Excise Authorities to obtain the licence under Rule 174 of the Rules was unjustified, and that the petitioner not being a manufacturer could not be called upon to obtain such a licence in respect of the goods purchased from the company viz. Hind Lamps. 6. The Writ petition has been contested by the Central Excise Authorities. The case taken in the counter affidavit is that the transactions between the petitioner and the Company are not that of a purchaser and seller. M/s Hind Lamps Limited is controlled and managed by the petitioner and that since the lighting bulbs and fluorescent tubes are not only manufactured in accordance with the specifications and orders placed with the Company but also the trade name given is that of the petitioner, the petitioner is a 'manufacturer' and, as such, liable to obtain the licence. For deciding the point relating to the requirement of obtaining the licence it is necessary to refer to the definition of the word 'manufacturer' given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretation of the word 'Manufacturer' excepting for taking within its purview also those persons who manufactured goods on his own account irrespective of the fact as to whether the goods manufactured were meant to be sold or not 8. The definition of the word 'manufacturer' lays down two categories of persons who would fall within its ambit. The first category would consist of all those persons who bring into existence or make or fabricate an article or a product by employing his own hired labour needed for the production or manufacture of excisable goods. The second category would, however, be comprised of those persons who do not directely employ their own labour but engage themselves in production or manufacture of goods on their own account. In the instant case we are not concerned with the first category of persons as admittedly the case of the petitioner would fall, if at all, within the second category. As already noted above, the Central Excise has taken a stand that since the manufacturing and marking of the brand names on the bulbs and fluorescent tubes of the petitioner's trade name, attracts the provisions of Section 2(f) of the Act, the petitioner would be deeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade names on the bulbs and tubes are those of the petitioner, and that the name of the manufacturing Company, i.e., Hind Lamps Limited, is not put on any of the goods, the petitioner company should be considered to be a manufacturer within the meaning of Section 2(f). The submission made does not appeal to be correct. 12. A trade mark is only a sign, device, or mark by which the articles produced are dealt in by a particular person or organisation. The objects of a trade mark are to point out distinctly the orgin or ownership of the article. It is only a business autograph of the owner, amounting to a representation, indicating the connection in the course of trade between the goods and the person having a right to use the trade mark. The use of a trade mark does not necessarily nor as a matter of law import that the articles on which it is used are manufactured by its user. It may be enough that they are manufactured for him, that they pass through his hands in the course of trade, and that he gives to them the benefit of its reputation or of his name or business style. Trade marks and manufacture of goods are two different concepts. They should not be inter mixed, and a pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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