Manufacturer is a person who does the ativities of manufacture
It also includes
A person who employs hired labor in production of excisable goods
and A person who engages in manufacture on his own account
Whether Raw Material Supplier is a Manufacturer?
Merely by supplying the raw material, the supplier thereof cannot be construed as the manufacturer
Example
M/s. Papadwala supplies raw material to several household ladies to make papads.
These ladies make papads at their homes and supply the same to M/s. Papadwala.
M/s.Papadwala does not supervise the ladies
Is M/s. Papadwala a manufacturer?
No, as he does not supervise and control the activities of the ladies who make the papads
Exam Questions
Question 5
A trader of steel articles purchases steel bars of 10 meters. He cuts the bars as per
requirements of customer and supplies the cut bars to them. He seeks clarification whether
he will be liable to pay excise duty on the cut bars sold by him.
Supreme Court has held that 'manufacture' can be said to have taken place when after a
process, a new and different article emerges having a distinctive name, character or use.
However, in this case, after cutting, the product continues to be a bar. There is no change in
name, character or use. Hence, the activity is not 'manufacture' and excise duty will not be
payable.
