The Supreme Court has cancelled the order passed by CESTAT Ahmedabad, holding that the tribunal wrongly divided what was actually a continuous and uninterrupted manufacturing process.
The Supreme Court ruled that cleaning, washing, and dry cleaning of clothes are considered ‘manufacturing’ under the Factories Act. The Court explained that something does not need to change completely or become a new product to be called a manufacturing process. This decision gives a wider meaning to what activities are included under the Act. It may also affect labor rules and workplace laws in the service industry.