Manufacture under excise law requires a new and different article; sawn timber was treated as exempt under the Supreme Court ruling.

Cutting timber logs into sawn timber was discussed as not amounting to manufacture under central excise unless processing brings into existence a new and different article with a distinct name, character or use; a mere change is insufficient. The article notes that the Supreme Court had treated sawn timber as entitled to exemption and had held that Tariff Item 68 was not attracted. In light of that binding ruling, the excise authorities were required to consider the petitioner's representation accordingly, and the writ petition was disposed of without a final adjudication of the claim.

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Issues: Whether cutting timber logs into sawn timber amounts to manufacture for the purpose of central excise, and whether the respondents should consider the petitioner's claim in the light of the Supreme Court's ruling on the point.

Analysis: The Court noted that the Supreme Court had held that manufacture requires a transformation resulting in a new and different article having a distinct name, character or use, and that every change does not amount to manufacture. On that basis, the Supreme Court had ruled that sawn timber was entitled to exemption and that Tariff Item 68 was not attracted. Since the petitioner had already submitted its representation, the matter was left to the respondents to act in accordance with that binding pronouncement.

Conclusion: The petitioner's claim was not finally adjudicated in the writ petition, but the respondents were directed to decide it in the light of the Supreme Court's ruling.

Final Conclusion: The writ petition was disposed of by requiring the excise authorities to proceed consistently with the Supreme Court's view on manufacture and exemption for sawn timber.

Ratio Decidendi: Manufacture under excise law arises only when processing brings about a new and different article with a distinct name, character or use; a mere change is insufficient.

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