1987 (10) TMI 50

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....s, Sojati Gate, Jodhpur. At all material times, he used to run a tailoring shop, where clothes were stitched. The shop employed at the relevant time about 10 or 12 persons as tailors. The number of employees, however, never exceeded 20. The clothes were supplied by the customers and these were stitched according to the different sizes of the customers. Such stitchings were done at the shop of the respondent herein manually by electric iron which was also used in the process of stitching. There were ironing of finished clothes also. The Employers State Insurance Court, Rajasthan came to the conclusion as follows : "The applicant is a tailoring shop which has employed more than 20 persons on one occasion and less on other days and makes us....

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.... answer the question whether the establishment of the respondent comes within the mischief of the Act, it is necessary therefore, in view of the facts found as noted before to determine only whether manufacturing process was carried on with the aid of power. It is manifest that there is use of electric power in the process of stitching. This is a finding of fact that the establishment or the shop employed more than 10 but less than 20 persons. It cannot also be disputed that by stitching commercially different goods are brought into existence. These are known differently, stitched shirt is indubitably a different commodity then unstitched cloth. It is so commercially known and treated. If by a process a different entity comes into existence....

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....271 and the decision of this Court in Chowgule and Co. Pvt. Ltd. and Another v. Union of India and Others - 1981 Tax L.R 2929 (S.C.) = 1981 2 S.C.R. 271. The effect of both these decisions have been considered in the aforesaid Empire Industries' case (supra). Learned counsel drew. our attention to the decision of this Court in Ardeshir H. Bhiwandiwala v. The State of Bombay - 1961 3 S.C.R. 592, where the question arose under the Factory Act. It was held therein that the salt works was a factory within the definition given in the Act and the appellant therein was rightly convicted for working it without a licence. The decision is of no assistance to the respondent in resolving the contentions involved in this appeal. 6. Our attention was ....