Stentering treated as deemed manufacture under Chapter 58 note, sustaining central excise duty demand.

Note 8 to Chapter 58, inserted from 16-3-1995, expressly brought stentering of fabrics within the scope of manufacture for central excise purposes. The legislative deeming provision made the general test of manufacture under Section 2(f) of the Central Excise Act, 1944 inapplicable for the relevant period, even though stentering did not cause a lasting change in the fabric. On that basis, stentering was treated as manufacture and the duty demand on cleared fabrics was held sustainable.

---

---

Issues: Whether the process of stentering of fabrics was to be treated as manufacture for central excise purposes after insertion of Note 8 to Chapter 58, and whether duty demand on cleared fabrics was sustainable.

Analysis: Note 8 to Chapter 58, introduced with effect from 16-3-1995, expressly brought the process of stentering within the scope of manufacture. Once the legislature has so declared, the process is to be treated as manufacture even if it does not bring about a lasting change in the fabric. The general test of manufacture under Section 2(f) of the Central Excise Act, 1944, as considered in cases without such a chapter note, was therefore not applicable to the present period.

Conclusion: Stentering was a deemed process of manufacture during the relevant period, and the duty demand was valid. The appeal was dismissed.

---