AIR 1986 SUPREME COURT 662 ::1986 TAX. L. R. 1933 ::1985 SCC (Tax) 416 ::1985 ECR 1169 (SC) ::(1985) 20 ELT 179 ::(1985) 2 ComLJ 260 ::(1986) 7 ECC 208 ::1985 CriLR(SC&MP) 549 ::1985 (3) SCC 314 ::1985 Bom LR 87 362 ::(1986) 2 Guj LR 865 ::1986 (162) ITR 846 ::1986 64 STC 42 ::(1987) 64 STC 42

Supreme Court Of India

Hon'ble Judge(s): S. Murtaza Fazal Ali, A. Varadarajan, Sabyasachi Mukharji , JJJ

(A) Central Excise and Salt Act (1 of 1944) , Sch.I Item.19(1), Sch.I Item.22(1)— Additional Duties of Excise (Goods of Special Importance) Act (58 of 1957) , Sch.I Item.19, Sch.I Item.22— (as amended by Central Excise and Salt and Additional Duties of Excise (Amendment) Act (1980) - Manufacture - Bleaching, dying and printing are even etymologically manufacturing process - Amendment of term "manufacture" so as to include these processes not ultra vires Entry 84 List I to Sch. 7 of Constitution. 1980 Tax LR 1766 (Guj), Reversed.@page-SC663 Constitution of India , Sch.VII List I Entry 84— @page-SC663 (Per Court) The process of bleaching, dyeing and printing etymologically also mean manufacturing processes. The amendment of the term manufacture in S.2(f) of 1944 Act, so as to include these processes and the substitution of Items 19 and 22 of the 1st Schedule to the Act of 1944 and the Act of 1957 are not ultra vires the Constitution.(Para 36 44 46 54) The taxable event under the Excise Law is 'manufacture'. The moment there is transformation into a new commodity commercially known as a distinct and separate commodity having its own character, use and name, whether be it the result of one process or several processes 'manufacture' takes place....