Reena Vs. Mohd. Rafeeq and ors. - Court Judgment

Excerpt:
- section 2(f): [dipak misra, k.k. lahoti & rajendra menon, jj] service tax - packaging and bottling of liquor whether amounts to manufacture within meaning of section 2(f) of central excise act 1944? finance act 932 of 1994), section 65 (76 b) (as amended on 16.6.2005) - held, the first limb of the inclusive definition of the manufacture under section 2(f) of central excise act has a very wide connotation. as the definition clause lays down an inclusive facet, the term manufacture has to be construed in a natural and plain manner and would include any process incidental or ancillary to the completion of a manufactured product. keeping in view the context in which the term manufacture has been used, it would take in its fold incidental and ancillary process in the manufacture or finishing of any manufactured product. it does not leave any room for doubt that an allied process should be integral and inextricable part of manufacture of completeness and presentability of the manufactured product. section 65(76b) of finance act used the words but it does not include. thus it is a definition which has the inclusive as well as exclusive facet. by virtue of the same it may include certain things and exclude others. it is well settled principle of law that a definition is not to be read in isolation and has to read in context of phrase which it defines, releasing that function of a definition is to give precision and certainty to the word or phrase which would otherwise be vague and uncertain. regard being had to the exclusionary fact in the finance act, though a limited one it would exclude the manufacturing process as defined under section 2(f) of the 1944 act. keeping in view the aforesaid dictionary clauses and circulars issued by the c.b.e.c. it is quite luminescent that would manufacture has to be understood in a broader sense and not to be confined or restricted to the excisable product in the act. it would include all processes which amount to manufacture whether or not the final product is an excisable product. in the process of manufacturing of country spirit, the over proof spirit which is not potable is reduced to issuable strength, which is potable. colouring and flavouring agents are added at the time of maturation. thereafter the liquor is supplied in sealed bottles to the retail contractors. this is the process of treatment given to over proof spirit in order to render it fit for human consumption in the form of country liquor. if the process is analysed there cannot be any scintilla of doubt that the process involves the manufacturing one under the provisions of section 2(f) of central excise act, 1944. as per the m.p. country spirits rules as well as clause 6 of the tender conditions it is mandatory for a distiller to supply country liquor in sealed bottles and not otherwise. therefore, packaging and bottling of liquor come within the ambit and sweep of manufacture within the meaning of clause (f) of section 2 central excise act, 1944 in view of the definition contained in section 65(76b) of the finance act especially keeping in view the exclusionary facet and further regard being had to the circular issued by central board of excise and customs.n.k. mody, j.1. being aggrieved by the inadequacy of the amount awarded vide award dated 9.2.1998 passed by the third m.a.c.t., dewas in claim case no. 167 of 1997, whereby a sum of rs. 51,000 has been awarded along with interest at the rate of 12 per cent per annum, the present appeal has been filed.2. learned counsel for the appellant submits that in the accident appellant who was aged seven years at the time of accident sustained injuries in her hand. it is submitted that right hand of the appellant was crushed. appellant was hospitalised from 18.8.1994 to 27.9.1994. break-up of amount awarded is as under:towards medical expenses rs. 5,000towards expenditureincurred on attenders rs. 5,000towards future expectationsof life rs. 5,000towards future loss ofincome rs. 36,0003. it is submitted that amount awarded is at lower side. from the medical evidence it is proved that appellant has sustained permanent disability of 48 per cent for which the medical certificate of dr. das is on record. it is submitted that appellant, who is a girl has lost her future prospects of marriage. it is also submitted that appellant is studying in class x and appellant would not be able to write with her right hand.4. mr. rajesh lal, learned counsel for the appellant placed reliance on a decision in the case of kewal mehra v. jai paul singh , wherein the injured was unmarried young lady of 25 years who sustained permanent disability of 50 per cent on account of disfiguration of face and scalp and was awarded a sum of rs. 3,90,000 holding that her marriage prospects have become dim.5. further reliance was placed by mr. rajesh lal on a decision in the case of dikcha v. jamaluddin , wherein in a case where injured was a young lady who sustained compound fracture in tibia and fibula of both legs, skin grafting was done, legs lost their natural shape and injured became bow-legged and was not in a position to move in the society freely unless she covers her lower portion of body completely, deformity and damaged skin diminished marriage prospects. the tribunal awarded an amount of rs. 2,70,522. divisional bench of this court enhanced it to rs. 5,00,000.6. mr. vinay zilawat, learned counsel for respondent no. 4 submits that looking to the injuries sustained by the appellant, the amount awarded is just and proper.7. from perusal of the record it is evident that there was crush injury in the right hand and also fracture. it was found that there was a deformity in the palm of right hand and also weakness in palm of right hand grip. appellant is also present at the time of hearing and this court was also having occasion to see the appellant. from her personal appearance it is apparent that there is deformity in her palm of right hand and she has to move in the society with deformation in her hand as it cannot be covered in any manner. no doubt it has diminished the marriage prospects of the young lady. appellant has also suffered a lot on account of accident. her education has also been disturbed.8. in the facts and circumstances of the case, the amount awarded by the learned tribunal is on the lower side. from the medical certificate it is also evident that the disability has been assessed vide exh. p23 as 48 per cent. in the opinion of this court the amount of rs. 51,000 as awarded by the learned tribunal is on the lower side. same is enhanced to rs. 2,00,000. enhanced amount of rs. 1,49,000 shall carry interest at the rate of 6 per cent per annum from the date of filing of the application. the enhanced amount shall also be paid by the respondent nos. 1, 2 and 4 as directed by the learned tribunal. the amount awarded shall be deposited with a nationalised bank and will be utilised for the betterment of the appellant, which also includes her education and marriage.with the aforesaid observations, appeal stands disposed of.