Query on manufacture u/s 2(f)

No. There are lot of judgments on it.

Raksh*t Verma Advocate

09810525780.

Sir
I wud be grateful to you if quote one or two judgments on the same ....

In order to attract any activity under definition of manufacturer,a new distinct commodity must emerge after the process.Now the the process of grinding is manufacture or not will be depend on what emerges after grinding,if the same thhing emerges after grinding then it isnot manufacture otherwise it may be termed as manufacture.For example grinding of wheat in order to obtain Atta or Dalia is manufacture.But grinding of sl*g was not as manufacture as even after grinding sl*g remain asl*g[2005 (188)ELT 179].

@ Prabhatji - In my case the clients are manufacturing Pneumatic Jack Hammers & spares parts used in mining industry.

Grinding is used as a process to polish the steel made component such as to smoothen its marketability.

Without grinding the product may be sold but the product wont be complete in itself.

Buyer may exist but it wont get the desired result & the selling price may vary by around 50%. 

Plz suggest it it amounts to manufacture u/s 2(f)???

your client coverd by u/s 2(F). as definition of manufacture also includes INTERMEDIATE GOODS.

hence this activity covers by manufacture.

refer defination of manufacture as well as notification no. 67/95

The golden test is whether after the process a new unique product emerges or not,if the process brings a  new distinct product then it may fall within sec.2(f),otherwise not.In your case it appears that grinding is only part of the whole manufacturing activity.Simply grinding is not manufcturing as a hammer remains a hammer even after grinding.The fact that you may get abetter price after grinding has no relevence for defining manufacturing

@ Prabhatji: Thank You for replying.

Is'nt it an incidental process for the completion of the finished product.

Plz help.

If grinding has some nexus with the marketability of the goods then we can count it as incidental or ancillary process.Then we have to show that without the process undertaken the product is not complete and the same is not marketable .