Sales Tax Act 1990 

Section 2(17)

Manufacturer or producer [Section 2(17)]
Manufacturer means a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him; and shall include:

⇒ a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages, repackages or prepares goods by any other manner;

⇒ an assignee or trustee in bankruptcy, liquidator, executor, or curator or any manufacturer or producer and any person who disposes of his assets in any fiduciary capacity; and

⇒ any person, firm or company which owns, holds, claims or uses any patent, proprietary or other right to goods being manufactured, whether in his or its name, or on his or its behalf, as the case may be, whether or not such person, firm or company sells, distributes, consigns or otherwise disposes of
the goods.

Provided that for the purpose of refund under this Act, only such person shall be
treated as manufacturer-cum-exporter who owns or has his own manufacturing
facility to manufacture or produce the goods exported or to be exported;

Explanation:

The bare reading of the definition clarify that manufacturing services provided by a person on behalf of a principal are covered within the definition of manufacturing. For example dyeing services, toll manufacturing, knitting services etc.

Moreover, any person who either produces goods himself or out-sources
such manufacture is also treated as a manufacturer.