Admitted shortage of finished goods defeated reliance on a manufacture precedent and left no substantial question of law.

An admitted shortage of finished marble slabs, not a question of manufacture, was the real controversy before the Tribunal. The assessee's explanation that the shortage resulted from wear and tear during storage or handling was not substantiated, so the factual basis for invoking the cited precedent was absent. Because that precedent concerned manufacture and not shortage of stock, it was inapplicable. On those facts, no substantial question of law arose from the Tribunal's order, so the reference petition was not maintainable, and the connected writ petition seeking refund on the same footing also failed.

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Issues: Whether any substantial question of law arose from the Tribunal's order concerning shortage of marble slabs and the consequent duty and penalty, and whether the connected writ petition could be maintained on the same issue.

Analysis: The reference petition was founded on the contention that cutting marble blocks into slabs did not amount to manufacture, but the factual basis of the case before the Tribunal was different. The dispute before the Tribunal related to admitted shortage of finished marble slabs, and the petitioner failed to substantiate the explanation that the shortage resulted from wear and tear during storage or handling. The precedent relied upon was held to be inapplicable because it dealt with manufacture, whereas the present matter turned on shortage of stock and the assessee's own admission. As no substantial question of law arose from the facts found by the Tribunal, the reference was not maintainable. For the same reason, the writ petition seeking refund on the basis of the same precedent and the same order also could not succeed.

Conclusion: The reference petition failed for want of any substantial question of law, and the writ petition also failed.

Ratio Decidendi: A precedent on manufacture is inapplicable where the real controversy is an admitted shortage of finished goods, and no substantial question of law arises unless the factual foundation for the proposed question is established.

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