No manufacture in cable jointing kits when components retain identity and mere packing does not create excisable goods.

Cable jointing kits were held not to involve manufacture because the identity of the individual components remained unchanged when they were placed together in one box. The Tribunal applied the principle that mere assembly or packing of known marketable items does not result in a new product or excisable manufacture. It also noted that the Central Board had accepted this position in Circular No. 583/20/2001-CX dated 20-8-2001. On the facts considered, the kits were not chargeable to excise duty and the Revenue's appeal failed.

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Issues: Whether cable jointing kits are chargeable to excise duty and whether placing the components together in a kit amounts to manufacture.

Analysis: The Tribunal followed the view that the identity of the individual items placed in the kit remains unchanged, the articles are known in the market as such, and no transformation occurs merely because the components are put together in one box. The Tribunal also noted that the Central Board had accepted the judicial position through Circular No. 583/20/2001-CX dated 20-8-2001 on the advice of the Law Ministry.

Conclusion: Cable jointing kits do not amount to manufacture and are not chargeable to excise duty on the facts considered; the appeal by the Revenue failed.

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