Manufacture and excise classification turned on whether processed Borkut became a new, distinct and marketable product.

Processing a commodity with added salt and sugar as preservatives can amount to manufacture where it brings into existence a new, distinct and marketable product. On that reasoning, the Tribunal agreed with the appellate finding that "Borkut" was excisable goods and correctly classifiable under sub-heading 2001.10 of the Central Excise Tariff Act, 1985. The decision applies the principle that excise liability depends on whether the processed article has acquired a separate commercial identity and fits the appropriate tariff heading.

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Issues: Whether "Borkut" was excisable goods and whether it was correctly classified under sub-heading 2001.10 of the Central Excise Tariff Act, 1985.

Analysis: The product was prepared with added salt and sugar as preservatives, and the resulting commodity was treated as a new and distinct marketable product. The appellate authority had already recorded a reasoned finding on the basis of the relevant judicial precedents that the process resulted in manufacture and that the product fell within the cited tariff heading. The Tribunal agreed with that conclusion and found no reason to interfere.

Conclusion: "Borkut" was held to be excisable and classifiable under sub-heading 2001.10 of the Central Excise Tariff Act, 1985, against the assessee.

Ratio Decidendi: Where processing brings into existence a new, distinct and marketable product, the product is liable to excise classification under the appropriate tariff heading.

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