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TMI Blog2008 (9) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition of manufacture under the Central Excises and Salt Act. Manufacture has been defined in Section 2(f) of the Act as follows : "2(f) 'Manufacture' includes any process,- (i) incidental or ancillary to the completion of a manufactured product; and (ii) which is specified in relation to any goods in the Section or Chapter notes of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture, And the word 'manufacturer' shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacturer of excisable goods, but also any person who engages in their production or manufacture on his own account." 3. The brief facts are that the respondent is engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 996 (88) E.L.T. 35 which held as follows : "This section empowers the Board to issue circulars for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods. Certainly, this section does not authorize the Board to issue directions which is contrary to the decision rendered by the Tribunal. Mr. Ajmera, learned Advocate could not point out anything which would suggest that the Board has such powers or that the Board was justified in issuing such circulars. It may be that the Board may not be in agreement with the view taken by the Tribunal. Then in that case, the Board may carry the matter in appeal, but once the decision has become final by issuing circular, the decision ren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... makes it difficult for the Court to render justice in time. 4. The Government, therefore, have decided that filing of appeal may be considered only where substantial questions of law are involved and there is no direct filling or case law of the Supreme Court on the issue. 5. Further, no appeal to the Supreme Court may be filed where such duty involved is Rs. 5 lakhs or less." 7. The above considerations cannot be held to be relevant to reverse the decision of the Tribunal which has been rendered on cogent grounds. The decision of the tribunal having become final, the only option left with the Department was to take the matter in appeal and impugn that decision. The issuance of circular by the Board in the present facts cannot be held to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the numerous processes that are required to turn the raw material into a finished article known to the market the clause will be applicable, and an argument that power is not used in the whole process of manufacture using the word in its ordinary sense, will not be available. It is only with this limited purpose that the legislature in our opinion, inserted this definition of the word "manufacture" in the definition section and not with a view lo make the mere "processing" of goods as liable to excise duty." 10. It is apparent that mere processing of the goods is not manufacture and to fall within the definition of manufacture a new substance should be formed. In the present case no new substance is formed and only a diluted form of o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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