Packing of matches in boxes is a process incidental or ancillary to the completion of the manufactured product 'match' and therefore comes within the purview of the expression 'manufacture' as found in Section 2(f) of the Central Excise Act.

This appeal by the Asstt. Collector of Central Excise, Vellore, is against the judgment of the learned Judicial First Class Magistrate, Vellore, acquitting the accused who has been charged for offence

"punishable under Rule 174 and Section 6(a) read with Section 9(b) of the Central Excise Act" *

2.The accused-respondent (hereinafter referred to as the accused) is the Proprietor of M/s. Mohan Match Factory at Thandarampet Road, Tiruvannamalai. He has a valid licence issued by the Central Excise Department to use the approved trade labels on the matches manufactured in his factory. He is himself a resident of 91, Kammalar Street, Tiruvannamalai. On certain information that the accused is engaged in manufacture of matches and is running a mini match factory without a valid licence to do so at his residence, the officers of the Counsel proceeded to the residence of the accused on 29-9-1975. The door which was locked outside was opened by an employee and they noticed that "a part of manufacture of matches" was carried on by three children and a woman Rukmani who is the wife of an employee of the accused, in Mohan Match Factory. The match boxes were found to be in labelling and packing stages. There were also 13 frames used for side painting of matches. A bucket of potash, match labels and empty boxes were found and they were seized under a Mahazar. The accused came at 5.30 p.m. to his residence but refused to attest the Mahazar. Rukmani gave a statement voluntarily when examined. She admitted the statement to be correct. The accused gave a statement voluntarily to the Supdt. of Police, Tiruvannamalai on 4-10-1975 at about 11.30 a.m. and he contended that the matches seized from his house were duty paid and as they were drenched they were brought to his house for drying and the matches were covered by the delivery note dated 27-9-1975. A complaint was lodged by the Asstt. Collector. The learned Magistrate found that

"there is no sufficient and satisfactory evidence in this case to conclude that the accused has manufactured 'matches" *

in his residence without a valid licence'.

3.The real question that falls for determination is whether the packing of 'match' in a match box is a process incidental or ancillary to the completion of the manufactured 'match'. The other question is whether the accused committed the offences punishable under Rule 174 of the Central Excise Rules and Section 6(a) read with Section 9(b) of the Central Excise Act.

4.A reference to the Central Excise Tariff shows that 'matches' are described in Tariff Item No. 38. It runs thus :

"Match includes a fire work in the form of a 'match' and where a match stick has more heads than one capable of being ignited by striking, each such head shall be deemed to be a match" *

It is therefore, contended for the respondent by his learned Counsel that a match stick with a match head shall be deemed to be a 'match' and once when the manufacture of match stick with match head is complete, the manufacture of a 'match' is complete and packing them in the boxes is not a process of manufacture and even if the employees of the accused were packing match sticks in boxes, the accused would not be guilty of the offence with which he is charged. He derives support from the fact that duty is payable on the match and not on match boxes with match sticks. The rate of duty as seen from Tariff Item No. 38 is "65 paise for every thousand matches or fraction thereof". The learned Counsel for the appellant referred me to the exemptions notified in Notification No. 45/61-C.E., dated 1-3-1961 which shows that in the case of matches in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, the rate of duty is Rs. 4.60 per gross of 50 matches each and in the case of matches in or in relation to the manufacture on which no process is ordinarily carried on with the aid of power, the rate is Rs. 4.30 per gross of 50 matches each. It is argued for