Manufacture - Definition - Law Dictionary Home Dictionary Definition manufacture

Definition :

Manufacture, implies a change but every change is not manufacture. But something more is necessary and there must be transformation, a new and different article must emerge having a distinctive name, character or use, Hindustan Poles Corporation v. Commissioner of Central Excise, (2006) 4 SCC 85: (2006) 4 JT 185: (2006) 3 SCALE 601: (2006) 4 SLT 445: (2006) 3 SCJ 645: (2006) 6 SCJ D 230: (2006) 145 STC 625: (2006) 196 ELT 400.

Manufacture, implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use, Union of India v. Delhi Cloth and General Mills, AIR 1963 SC 791.

Implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use, Words and Phrases (Permanent Edition), Vol. 26.

It is the process or activity which brings into being articles which are known in the market as goods and to be goods these must be different, identifiable and distinct articles known to the market as such. It is then and then only that manufacture taken place attracting duty, Hindustan Polymers v. Collector of Central Excise, AIR 1990 SC 1676 (1682): (1989) 4 SCC 323.

Means to make, produce, fabricate, assemble, pro-cess or bring into existence, by hand or by machine, a new product having distinctive name, character or use and shall include process such a refrigera-tion, cutting, poliding, blending, repair, remaking, re-engineering and includes agriculture, aquacul-ture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining. [Special Economic Zones Act, 2005 (28 of 2005), s. 2(2)]

--anything made by art. As to a patent for a manufacture, see LETTERS-PATENT. As to the operation of the Factory Acts, see that title, and consult Notcutt on the Factory and Workshop Acts.

In relation to an explosive includes the process of--component parts or otherwise breaking up or unmaking the explosive, or making fit for use any damaged explosive; and

(2) re-making, altering or repairing the explosive. [Explosives Act, 1884 (4 of 1884), s. 4 (h) (1) (2)]

In relation to any drug or cosmetic included any process or part of a process for making, altering, ornamenting, finishing, packing, labeling, breaking up or otherwise treating or adopting any drug or cosmetic with a view to its sale or distribution but does not include the compounding of dispensing of any drug, or the packing of any drug or, cosmetic, in the ordinary course of retail business; and 'to manufacture shall be construed accordingly. [Drugs and Cosmetics Act, 1940 (23 of 1940), s. 3 (f)]

It includes any process incidental or ancillary to the completion of the manufacture of any dutiable goods. [Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1955), s. 2 (f)]

It includes any process incidental or ancillary to the manufacture of an article of food. [Prevention of Food Adulteration Act, 1954 (37 of 1954), s. 2 (viiib)]

It means--

(1) all processes other than production by which such drugs or substances may be obtained;

(2) refining of such drugs or substances;

(3) transformation of such drugs or substance; and

(4) making of preparation (otherwise than in a pharmacy on prescription) with or containing such drugs or substances. [Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985), s. 2 (x)]

The word 'manufacture' used as verb is generally understood to mean as bringing into existence of a new substance and does not mean merely to produce some change in a substance, however, minor in consequence the change may be, Union of India v. Delhi Cloth and General Mills Co. Ltd., AIR 1963 SC 791 (795): (1963) 1 Supp SCR 586. [Central Excise and Sales Act, (1 of 1944) as amended by (38 of 1960), s. 2(f)]

Manufacture is a kind of productive industry in which the making of articles or material, often on a large scale, is by physical labour or mechanical power, Secretary, Madras Gymkhana ClubEmployees' Union v. Management of the Gymkhana Club, AIR 1968 SC 554: (1968) 1 SCR 742.

The word 'manufacture', according to its dictionary meaning, is the making of articles or material (now on a large scale) by physical labour or mechanical power. (Shorter Oxford English Dictionary, Vol. I, 1203) According to the Permanent Edition of Words and Phrases, Vol. 26, 'manufacture' implies a change but every change is not manufacture and yet every change in an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use, Allenbury Engineers Pvt. Ltd. v. Ramkrishna Dalmia, AIR 1973 SC 425: (1973) 1 SCC 7: (1973) 2 SCR 257.

Here the formation of mixture by the mere process of unloading did not involve any process of 'manufacture'. There is no new process of the manufacture by the assessee, State of Maharashtra v. Central Provinces Manganese Ore Co. Ltd., AIR 1977 SC 879: (1977) 1 SCC 643: (1977) 1 SCR 1002.

'Manufacture' according to the definition of the term in s. 2(11) of the Act, includes not only 'any art, process of manner of providing, preparing or making an article' but also 'any article prepared or produced by the manufacture', M/s. Bishwanath Prasad Radhey Shyam v. Hindustan Metal Industries, AIR 1982 SC 1444: (1979) 2 SCC 511: (1979) 2 SCR 757.

The expression 'manufacturing purposes' has not been defined in the Transfer of Property Act. It has, therefore, to be construed in its popular sense. According to the Permanent Edition of Words and Phrases, Vol. 26, 'manufacture' implies a change but every change is not manufacture and yet every change in an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use, P.C. Cheriyan v. Mst. Barfi Devi, AIR 1980 SC 86 (89): (1980) 2 SCC 461: (1980) 1 SCR 961.

It is only when the change, or a series of changes, take the commodity to the point where commercially it can no longer be regarded as the original commodity but instead is recognised as a new and distinct article that a manufacture can be said to take place, Chowgule & Co. Pvt. Ltd. v. Union of India, AIR 1981 SC 1014: (1981) 1 SCC 653: (1981) 2 SCR 271.

The word 'manufacture' occurring in the expression 'used in the manufacture' in clause (b) of Rule 27 cannot be given a limited meaning. 'Manufacture' and 'manufacturing process' is that as a result of undergoing the process a distinct commercial commodity different from the raw materials comes into existence, Municipal Council v. M/s. Vraj Lal Manilal & Co., AIR 1982 SC 844: (1982) 1 SCC 637: (1982) 3 SCR 307.

If by a process a different entity comes into existence then it can be said that this was manufactured, Regional Director, Employees State Insurance Corporation v. Ram Chander, (1988) Supp SCC 90.

'Manufacture' implies a change, but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more was necessary and there must be transformation; a new and different article must emerge having a distinct name, character or use ' Sawn timber not different from timber logs, Collector of Central Excise v. Kutty Flush Doors and Furniture Co. (P) Ltd., AIR 1988 SC 1164 (1165): (1988) Supp SCC 239: (1988) 3 SCR 363.

Manufacture means to bring into existence a new substance and does not mean merely to produce some change in a substance, Collector of Central Excise v. Kiran Spinning Mills, AIR 1988 SC 871 (872): (1988) 2 SCC 348: (1988) 2 SCR 1006. [Central Excise and Sales Act, 1944, s. 35L(b)]

The word 'manufacture' implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinct name, character or use, Collector of Central Excise v. Ambalal Sarabhai Enterprises P. Ltd., AIR 1990 SC 59 (62): (1989) 4 SCC 112: (1989) 3 SCR 784.

The prevalent and generally accepted test to ascertain that there is 'manufacture' is whether the change or the series of changes brought about by the application of processes take the commodity to the point where, commercially, it can no longer be regarded as the original commodity but is, instead, recognised as a distinct and new article that has emerged as a result of the processes, M/s. Ujagar Prints v. Union of India, AIR 1989 SC 516 (528): (1989) 3 SCC 488: (1988) Supp 3 SCR 770.

By process of manufacture something is produced and brought into the existence which is different from that, out of which it is made in the sense that the things produced is by itself a commercial commodity capable of being sold or supplied. The material from which the thing or product is manufactured any necessarily lose its identity or may become transformed into the basic or essential properties, Dy. Commissioner of Sales Tax v. Coco Fibres, AIR 1991 SC 378 (379): (1992) Supp 1 SCC 290: (1990) Supp 3 SCR 419.

In relation to any insecticide, includes--

(i) any process or part of a process for making, altering, finishing, packing, labelling, breaking up or otherwise treating or adopting any insecticide with a view to its sale, distribution or use but does not include the packing or breaking up of any insesticide in the ordinary course of retail business; and

(ii) any process by which a preparation containing an insecticide is formulated. [Insecticides Act, 1968 (46 of 1968), s. 3(j)]

Means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include process such as refrigeration, cutting, polishing, blending, repair, remaking, re-engineering and includes agriculture, aquaculture, animal husbandry, floriculture, horticulture, viticulture, poultry, sericulture, aviculture and mining. [Special Economic Zones Act, 2005, s. 2(r)]

Manufacture, the word 'manufacture' has to be given a meaning as is understood in common parlance. It is to be understood as meaning the production of articles for use from raw or prepared materials by giving such materials new forms, qualities or combinations whether by land labour or machines. If the change made in the article results in a new and different article then it would amount to a manufacturing activity, Aspinwall & Co. Ltd. v. I.T. Commr., Ernakulam, AIR 2001 SC 3708.

The test for determination whether manufacture can be said to have taken place is whether the commodity which is subjected to process of manufacture can no longer be regarded as the original commodity, but is recognised in the trade as a new and distinct commodity. Commonly manufacture is the end result of one or more processes through which the original commodity is made to pays. The nature and extent of processing may vary from one case to another, and indeed there may be several stages of processing and perhaps a different kind of processing at each stage. With each process suffered, the original commodity experiences a change. But it is only when the change, or a series of changes take the commodity to the point where commercially it can no longer be regarded as the original commodity but instead is recognized as a new and distinct article that a manufacture can be said to take place, Deputy Commr. of Sales Tax v. M/s. Pio Food Packers, 1980 Supp SCC 174.

The word 'manufacture' generally and in the ordinary parlance in the absence of its definition in the Act should be understood to mean bringing to existence a new and different article having distinctive name, character or use after undergoing some transformation, Rajasthan State Electricity Board v. Associated Stone Industries, AIR 2000 SC 2382.

Manufacture, used as a verb is generally understood to means as 'bringing into existence a new substance and does not mean merely 'to produce some change in a substance, Union of India v. Delhi Cloth and General Mills Co. Ltd., 1977 ELT 199: AIR 1963 SC 791.

Manufacture, with all its grammatical variations and cognate expressions, means producing, making, extracting or processing any good and includes printing and raising of natural resources like minerals, coal etc. [West Bengal Value Added Tax Act, 2003, s. 2(22)]

Manufacture, will all its grammatical variations and cognate expressions includes producing, making, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods. [The Maharashtra Value Added Tax Act, 2002, s. 2(15)]

Manufacture, with all its grammatical variations and cognate expressions, means producing, making, extracting, collecting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods; but does not include such manufactures or manufacturing process as may be prescribed. [The Gujarat Value Added Tax Act, 2003, s. 2(14)]