( 1 ) THE petitioners in these four writ petitions are the owners of saw mills in Mangalore carrying on business in timber. They purchase timber logs from the State Forest depots and from others and convert them into smaller sizes, planks, etc. They also undertake job works by converting the logs belonging to others into sawn timber, planks, rafters, etc. , to the specification.

( 2 ) IN each of the cases the petitioner has challenged the show cause notices issued against him by the Assistant Collector of Central Excise, Mangalore, by which they were asked to show cause why action should not be taken against them for having manufactured and cleared sawn timber and other products without paying excise duty and for other offences committed under the Act, such as, failure to obtain licence, etc.

( 3 ) THE petitioners have questioned the show cause notices in these petitions and have prayed for declaring that the sawing of timber logs into different sizes, planks, beams, etc. , does not amount to 'manufacture' within the meaning of the said term as defined in Section 2 (f) of the Central excises and Salt Act, 1944 (Hereinafter referred to as 'the Act'), and as a consequence to prohibit the levy of duty or penalty under the Act and to quash the notices, Annexures A and H, issued by the 2nd respondent in each writ petition.

( 4 ) THE petitioners relied to the said show cause notices and contended that they did not indulge in the manufacture of any excisable goods within the meaning of Section 2 (f) of the Act and what they were doing was only cutting the timber logs into smaller sizes for the purpose of facilitating stacking and transport and that therefore they were not liable to take our a licence and submit the returns and pay duty thereon, as required in the show cause notices.

( 5 ) THE Assistant Collector, Mangalore, did not agree with the said reply relying upon the Central excise Trade Notice No. 145 of 1976 dated 17-6-1976 insisted on the petitioner to produce books of accounts etc. , and issued summons for this purpose under Section 15 of the Act. Being aggrieved by the show cause notices and issue of summons, the petitioners have, in these writ petitions prayed for quashing the notices and for other reliefs.

( 6 ) IN one of the cases, namely - Writ Petition No. 15848 of 1979 by an order dated 11-3-1980 the assistant Collector was permitted to complete the adjudication proceedings under the Act and return the books of accounts etc. , seized from the petitioner therein. After the adjudication order was made the duty and the penalty imposed by the said order was also stayed by this Court pending disposal of the writ petition and the writ petition was also suitably amended praying for quashing the adjudication order.

( 7 ) ON behalf of the respondents a comprehensive statement of objections has been filed in W. P. No. 15848/79 which covers the contentions raised in all the petitions.

( 8 ) THE main contention of the petitioners in these cases is : that the 'sawn timber' is a product of 'manufacture' and hence is not exigible to Excise Duty ?

( 9 ) EXCISE duty is levied on the manufacture of goods under the Act. 'manufacture' is defined under Section 2 (f) of the Act, as follows :- "2 (f ). "manufacture" includes any process incidental or ancillary to the completion of a manufactured product; and. . . . . . . . . . . . ". It is the petitioners' contention, (1) that they do not manufacture any excisable goods which are dutiable under the Act. The timber purchased by them in the form of logs is cut into smaller sizes for facility of transportation and for stacking, preserving and marketing; (2) that no activity of manufacture is involved in converting logs of timber into cut sizes; etc. , (3) that the timber continues to be understood as timber even after it is converted into smaller sizes and it does not cease to be timber and no new commodity comes into existence; (4) no dressing or planning is done and the timber is no

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