Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 1979 (10) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1979 (10) TMI 77 - SC - Central ExciseWhether a lease of a premises for carrying on the business of retreading of tyres is a lease for "manufacturing purposes" within the contemplation of Section 106, Transfer of Property Act? Held that:- The retreading of old tyres does not bring into being a commercially distinct or different entity. The old tyre retains its original character, or identity as a tyre. Retreading does not completely transform it into another commercial article, although it improves its performance and serviceability as a tyre. Retreading of old tyres is just like resoling of old shoes. Just as resoling of old shoes, does not produce a commercially different entity having a different identity, so from retreading no new or distinct article emerges. The old tyre retains its basic structure and identity. The courts below were therefore, right in holding that the lease in the present case was not for manufacturing purposes, and the tenancy had been rightly terminated by thirty days notice. Appeal dismissed.
|