TMI Blog1980 (7) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... equipment for automotive and non-automotive units comprising master cylinder, wheel cylinder, brake washers, brake hoses etc. inclusive of foundation brakes. They supply brake assemblies to vehicle manufacturers, viz., Ashok Leyland, Premier Automobiles' Telco, Hindustan Motors, Heavy Vehicles factory belonging to the Defence Establishment of the Government of India etc. for fitment as original equipment. For these purposes, they obtain blank brake linings which form part of the components of the brake assembly under Chapter X procedure of the Central Excises and Salt Act from the manufacturers of brake linings without payment of central excise duty. So far as this is concerned, there is no dispute in this writ petition. 3. Apart from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther bound to take out a licence nor are they bound to pay excise duty on the brake linings sold by them. 5. It is admitted that what is purchased by the petitioners from Messrs Rane Brake Linings, Madras and other manufacturers of brake linings is brake lining blanks. It is also admitted that such brake lining blanks cannot be used by owners of motor vehicles without drilling holes and trimming or chamferring them. It is therefore, clear that what is manufactured and supplied by Messrs Rane Brake Linings, Madras and other manufacturers of brake linings to the specific order of the petitioners are incomplete brake linings or what are called brake lining blanks. The process of completion of manufacture of brake linings which could be readi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretation before a Bench of the Gujarat High Court in Extrusion Process Ltd. v. N.R. Jadhav, 1979 E.L.T. (J 380) - 1974 Tax. L.R. 1655. The question for consideration was whether printing and lacquering of plain extruded tubes was incidental or ancillary to the manufacture of aluminium tubes. In this context, after extracting the definition of manufacture as found in Sec. 2(f) of the Act, Sheth J. observed as follows :- "The tubes which the petitioners have been printing and lacquering were already manufactured by other manufacturers. Is the process of printing and lacquering them incidental or ancillary to the completion of manufacture of such a tube? The definition of 'manufacture' given in clause (f) clearly suggests that any proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in Section 2(f) of the Act includes all processes that are incidental or ancillary to the completion of a manufactured product the only question to be considered by us, in the present case, is whether the process of ironing applied to the stitched brassiers can be regarded as incidental or ancillary to their completion. In our opinion, the process of ironing that was applied to the stitched brassiers prior to their packing was a process incidental to the completion of the brassiers as a manufactured product since the said process was obviously intended to give a finishing touch in order to render them marketable as ready to wear undergarments. Inasmuch as the said process was admittedly being carried out with the aid of power, liability f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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