1987 (12) TMI 44

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..... orest Corporation Act, 1974 for better preservation, supervision, development and exploitation of forest produce, has approached this Court for a direction to Union of India restraining it and its officials from enforcing provisions of Central Excises and Salt Act, 1944 and demanding excise duty on 'round' or 'sawn' timber obtained from standing trees sold to it by State Government. 2. Dispute st .....

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..... Section 14 of the Excise Act, founded on Government of India, Ministry of Finance (Department of Revenue and Insurance) F. No. 35/28/75-TRU, dated 20th August, 1976 that sawn timber was in nature of finished product. In counter-affidavit the claim of Excise Department is that sawing of logs into rolling-slippers, sized timber and saw dust results into producing new and different article having a .....

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..... t was held that the word manufacture is generally understood to mean coming into existence of a new substance. Sawing of timber did not amount to manufacture as the timber even after sawing continued to be timber and no new commodity came into existence. The conversion of logs into planks, beams etc. did not amount to manufacture as envisaged by Section 2(f) of the Central Excise Act. It is thus o .....

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