THE FACTORIES ACT,1948 AND THE CODE ON OCCUPATIONAL
SAFETY, HEALTH AND WORKING CONDITIONS, 2020
Object of the Factories Act, 1948
1. Ravi Shankar Sharma Vs. State of Rajasthan
(It seeks to provide protection to the worker from being exploited by the greedy
business establishments and it also provides for the improvement of working conditions
within the factory premises)
2. State of Bombay Vs. Ardeshir H. Bhiwandiwala
(The object was to regulate labour and the said regulation was intended for the benefit
or welfare of the workers)
Interpretation of the Factories Act, 1948
Hindustan Machine Tools Vs. Labour Court
(As the act is a piece of welfare legislation, the interpretation which favours the working class
and which fulfils the object of the legislation has to be adopted by the court. An interpretation
which restricts or curtails the benefits admissible to workers under the act has to be avoided)
MANUFACTURING PROCESS
Factories Act, 1948 Code on Occupational Safety, Health and
Working conditions, 2020
Section 2(k)"manufacturing process" Section 2(ze) "manufacturing process"
means any process for- means any process for-
(i) making, altering, repairing, ornamenting, (i) making, altering, repairing, ornamenting,
finishing, packing, oiling, washing, cleaning, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing, or otherwise breaking up, demolishing, or otherwise
treating or adapting any article or substance treating or adapting any article or substance
with a view to its use, sale, transport, delivery with a view to its use, sale, transport, delivery
or disposal; or or disposal; or
(ii) pumping oil, water, sewage or any other (ii) pumping oil, water, sewage or any other
substance; or
substance; or
(iii) generating, transforming or transmitting
(iii) generating, transforming or transmitting
power; or
power; or
(iv) composing, printing, printing by letter
(iv) composing types for printing, printing by press, lithography, offset, photogravure
letter press, lithography, photogravure or screen printing,3-Dimensional printing,
other similar process or book binding; or prototyping, flexography or other types of
(v) constructing, reconstructing, repairing, printing process or book binding; or
refitting, finishing or breaking up ships or (v) constructing, reconstructing, repairing,
vessels; or refitting, finishing, or breaking up ships or
vessels; or
(vi) preserving or storing any article in cold
(vi) preserving or storing any article in cold
storage.
storage ; or
(vii) such other purposes as the Central
Government may notify.
Case Laws
Ardeshir H. Bhiwandiwala Vs, State of Bombay, 1961
(Production of salt is included. It is not an automatic process rather requires human agency for
the same)
Lal Mohammad v. Indian Rly. Construction Co. Ltd.,1999
Construction of Railway Line falls within the ambit of 2(k). It is not required that the end
product which resulted after adapting any raw material or article “with a view to its use” must
be a movable product or commodity.
M/S. Kores India Ltd., Chennai vs Commissioner Of Central Excise, 2004
'Manufacture' is a transformation of an article, which is commercially different from the one,
which is converted. The essence of manufacture is the change of one object to another for the
purpose of making it marketable. The essential point thus is that in manufacture something is
brought into existence, which is different from that, which originally existed in the sense that
the thing produced is by itself a commercially different commodity whereas in the case of
processing it is not necessary to produce a commercially different article.
To put differently, the test to determine whether a particular activity amounts to 'manufacture'
or not is: Does new and different goods emerge having distinctive name, use and character.
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 and liability to duty is attracted.
Etymologically the word 'manufacture' properly construed would doubtless cover the
transformation. It is the transformation of a matter into something else and that something else
is a question of degree, whether that something else is a different commercial commodity
having its distinct character, use and name and commercially known as such from that point of
view is a question depending upon the facts and circumstances of the case.
U.F.D. Corporation v. Jabar Singh, 2007
Activity of cutting, removal, disposal and sale of trees falls within the ambit of 2 (k).
Ravi Kumar Sharma Vs. State of Rajasthan
(One Test may be that whether the finished article is different from what it was before.)
Other Examples – Servicing of Vehicle Beedi Making Activities of Pathology Labs