Mere sawing of timber is not manufacture of a new excisable commodity, so its value cannot count toward the exemption ceiling.

Mere sawing of timber, without further finishing or transformation into a distinct article, does not amount to manufacture of a new excisable commodity. Applying the test of manufacture, the Tribunal held that sawing only reduced the size of the timber and did not create a product with a distinct name, character or use. Sawn timber therefore remained timber and its value could not be included in the turnover ceiling for exemption under the cited notification; the exemption remained available if the ceiling was satisfied after excluding that value.

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Issues: Whether sawn timber, without further finishing into distinct articles, was a new and different excisable commodity so that its value had to be included in the turnover ceiling for exemption under Notification No. 83/83-Central Excises dated 1-3-83.

Analysis: The Tribunal rejected the contention that because saw dust arising from sawing could be treated as a new excisable product, sawn timber must also necessarily be regarded as a new product. It held that there is no rule that a residue or by-product being different in character compels the main product of the same process to be a new commodity. Applying the test of manufacture, the Tribunal found that sawing only reduced the size of the timber and did not transform it into a new article with a distinct name, character or use. Sawn timber, in the absence of further finishing operations, remained timber and was not excisable for the purpose of inclusion in the clearance value.

Conclusion: Sawn timber was not a new or different excisable commodity and its value could not be included in the turnover ceiling; the exemption was therefore available if the ceiling was satisfied after exclusion of such value.

Ratio Decidendi: Mere sawing of timber, without transformation into a distinct article, does not amount to manufacture of a new excisable commodity, and the value of such timber cannot be counted for exemption ceiling purposes.

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