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Assignment No.1 (Part A) : Findings of The Case

An assignment on indirect taxation in Indian context though it is incomplete and might not be used as a complete source of the material I would recommend the reader to search elsewere to find something appropriate and stop wasting time or rather should have started earlier and took help of the teachers to do their own assignments.

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42 views1 page

Assignment No.1 (Part A) : Findings of The Case

An assignment on indirect taxation in Indian context though it is incomplete and might not be used as a complete source of the material I would recommend the reader to search elsewere to find something appropriate and stop wasting time or rather should have started earlier and took help of the teachers to do their own assignments.

Uploaded by

Viral Bhogaita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment No.

1 [Part A]
Findings of the case
The company Delhi Cloth & General Mills Ltd used to purchase oil from the market and
manufactured Vanaspati after subjecting the oil with various processes. The excise duty was
paid on manufacture of Vanaspati.
The excise department contended that during the process of manufacturing of Vanaspati,
vegetable non-essential oil was produced which is a separate dutiable product.
The court decided that manufacture implies a change, but every change is not manufacture.
Every change of an article is result of some treatment, labour and/or manipulations but
something more is necessary and there must be transformation taking place. A new and
different article must emerge having a distinctive name and character or use.
The court also held that mere processing of basic oils did not amount to manufacture
because it is not a marketable product since deodorization is necessary before marketing.

Definition of manufacture under excise law


Manufacture includes and process
I.
II.

Incidental or ancillary to the completion of a manufactured product; and


Which is specified in relation to any goods in the section or chapter notes of the
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to,
manufacture, and the word "manufacturer" shall be construed accordingly and shall
include not only a person who employs hired labour in the production or
manufacture of excisable goods, but also any person who engages in their
production or manufacture on his own account.

Cases where there was manufacture


Cases where there was no manufacture

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