TMI Blog1976 (7) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... mbers packed in 3,400 boxes. Ext. P 2 is the mahazar evidencing the said seizure. The seized articles were entrusted to the custody of Shri S M. Syed Mohsin, a partner of the said firm, after obtaining an undertaking from him. On the same date the 2nd respondent issued to Shri Syed Mohsin the order Ext. P 3 purporting to be one under Section 110 of the Customs Act, 1962 read with Section 12 of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act) prohibiting him (Syed Mohsin) from removing, parting or otherwise dealing with the seized goods deposited with him without the previous permission of the Central Excise Authorities. This writ petition has been brought by the petitioner seeking to quash Exts. P 2 and P 3. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion "articles of readytowear apparel (known commercially as ready made garments) including undergarments" and hence excise duty will be leviable in respect of them if, in relation to their manufacture, any process is ordinarily carried on with the aid of power. 4. The process employed in the petitioner's factory for the manufacture of brassieres has been explained as follows in Ext. P 1 :- 'We manufacture brassieres. We started manufacturing this ready-to-wear apparel in, 1964. We have a factory in Pattikkara Street, Palghat with 9 sewing machines where these brassieres are stiched. Cutting is done in our premises in Market Road, Palghat. After cutting to sizes the cloth, tape, elastics and label are given to the workers in the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the commercial sense at that very stage in order that such work may be regarded as a process carried on in relation to the manufacture of such article. We say so because for the purposes of the Act the expression `manufacture' has been given a special definition in Section 2(f). Under that definition `manufacture' includes any process incidental or ancillary to the completion of a manufactured product. The scope of this definition came up for consideration before the Gujarat High Court in Extrusion Processes Pvt. Ltd. v. N.R. Jadhav, 1974 Tax. L.R. 1655. The question that arose for decision in that case was whether under Item 27(e) of the First Schedule of the Act which subjects to payment of excise duty extruded pipes and tubes of alu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of tubes by application of the process of extrusion. This decision is, in our opinion, of little assistance to the petitioner because the conclusion of the learned Judges that excise duty was not leviable in that case was rested wholly on the ground that Item 27 (e) of the First Schedule authorises the levy of excise duty only if there is a manufacture of pipes or tubes of aluminium by the application of any process of extrusion. It was because that process of manufacture had been completed prior to the stage of the purchase of the tubes by the petitioner in that case that the learned Judges held that the work of printing and lacquering carried out by the petitioner in relation to those tubes could not be said to be incidental or an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
