TaxTMI 
TaxTMI 
1986 (3) TMI 83
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....ntation to the Collector of Central Excise, Coimbatore, to grant exemption to the members of its Association from payment of excise duty on the cone yarn would on the Cone Winding machines. The petitioner-Association stated that its members are getting dyed cotton yarn in loose form from the dyeing factories and then wind them into cones with the aid of power by means of Cone Winding machines. The dyed cotton yarn is supplied to the manufacturers of hosiery products. Some of the members being very poor, they are doing cone winding on job-charge basis on the loose dyed cotton yarn supplied by the hosiery manufacturers. 3. The petitioner represented that on a plain reading of tariff item 18A read with Sec. 2(f) and sub-item (iv) thereo....
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....nversion of loose dyed yarn in hanks into cones will not attract excise duty, the petitioner has filed this petition under Art. 226 of the Constitution praying for the issue of a writ of declaration to the effect that item 18-A of the Central Excise Tariff in so far as it includes cones and the consequential steps taken by the second respondent for collection of excise duty under item 18-A of the Central Excise Tariff including prosecution as ultra vires, unconstitutional, void, illegal and without jurisdiction in so far as they relate to the members of the petitioner-association. 6. Propounding the case of the petitioner, Mr. K. Doraiswami, learned Counsel argued that winding of yarn is restored to only to facilitate the manufacture....
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.... bobbins, pirns, spools, reels, cheeses, balls, or on warp beams, all of them will come within the mischief of item 18A. Such being the case, it is prima facie not open to the petitioner to contend that the inclusion of cones in item 18A is not just or legal. The word 'manufacture' has been defined in Section 2(f) and it is in the following terms :- 2(f) 'manufacture' includes any process incidental or ancillary to the completion of a manufactured product; and (i) ....... (ii) ....... (iii)....... (iv) In relation to goods comprised in item No. 18A of the First Schedule, includes sizing, beaming, warping, wrapping, winding or reeling, or any one or more of these processes, or the conversion of any form of the said goods into another fo....
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....ished product alone, i.e., vanaspathi which is liable to excise duty as a vegetable product of manufacture from out of ground nut oil and til oil or whether they are also liable to pay excise duty on the ground that in the course of the manufacture of Vanaspathi, they bring into existence at one stage, after carrying out some processes with the aid of power, what is, known to the market as refined oil, the said oil constituting vegetable non-essential oil and attracting excise duty as such. In that context, the Supreme Court had to examine what will constitute 'manufacture'. The Court held as follows - "The word 'manufacture' used as a verb is generally understood to mean 'as bringing into existence' a new substance and does not mean merel....