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Judgment
Mr. Bharadwaj, learned advocate for the revenue/appellant, placed the following question for consideration of this Court :
"Whether under the facts and circumstances of the case, labelling and packing of ''handmade Biri'' in printed plastic wrappers with the aid of power - operated machine to bring into existence ''retail pack'', having brand name, meant for ultimate consumer, comes within the purview of the definition of ''manufacture'' as defined in Section 2(f) of the Central Excise Act, 1944?"
Mr. Bharadwaj submitted that packing of toasted biri bundles in pre-printed wrappers [purchased from outside] with the aid of machine by power to make it saleable as pouch/sachet is an activity which is incidental or ancillary to the completion of the manufactured biri and therefore, it amounts to a process in manufacturing within the meaning of definition of the word "manufacture" appearing from clause (f) of Section 2 of the Central Excise Act, 1944.
We are not impressed by this submission. Packing or any activity with respect to packing cannot be incidental or ancillary to the manufacture of biri. Clause (f) of Section 2 which defines the word "manufacture" is worded as follows :
"(f) "manufacture" includes any process -
(i) incidental or ancillary to the completion of a manufactured product;
(ii) which is specified in relation to any goods in the section or Chapter notes of The First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or
(iii) which in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or relabelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer;
and the word "manufacture" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;"
It would appear that packing or re-packing of goods is also included by the legislature within the manufacturing activity in respect of the goods specified in the Third Schedule. Admittedly, biri is an item, which has been kept in the First Schedule. Therefore, it is more than clear that the legislature has made a distinction as to in which cases packing or repacking is an activity which can be included to be construed as in aid of manufacture of the item. When the legislature itself has made a distinction, there is no reason why any separate meaning could be given to that.
For the aforesaid reason, we are of the opinion that no substantial question of law is involved and we refuse to admit the appeal, which is accordingly dismissed.