1982 (9) TMI 101

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....t in its business. The ITO rejected the claim of the assessee on the ground that the assessee was not engaged in the business of 'manufacture' or 'production' of any of the articles specified in the Ninth Schedule to the Act. On appeal, the AAC confirmed the order of the ITO. The assessee has, therefore, filed the present appeal. 3. Before me, the learned representative of the assessee contended that the laying down of pipes, after joining them together, tantamounted to 'manufacture' or 'production' of articles within the meaning of section 32(1)(vi). According to him, the long joint pipes resulting from the joining of the smaller pipes were different from their components, and since a new product emerged out of the original constituents....

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....materials new forms, qualities or combinations by hand, labour or machinery". According to Webster's Dictionary 'to manufacture' means "to work as raw or partly wrought materials into suitable forms for use". Thus, the expression 'manufacture' means the transformation or change of raw material into a changed form for use. It has been held by the Kerala High Court in the case of Casino (P.) Ltd. that the expression 'manufacture', in its ordinary meaning, is a process which results in an alteration or change in the good which are subject to manufacture. According to this authority, the real test is whether a commodity which, in commercial sense, is different from the raw material has resulted due to the manufacture. Now, in the present case, ....