Broad interpretation of Rule 173H(2)(e) extends remaking relief even where the process amounts to manufacture.

Rule 173H(2)(e) of the Central Excise Rules, 1944 was construed broadly to cover duty-paid goods retained in or brought back into a factory for being re-made. The term "making" was treated as wide enough to include manufacture, so the rule was not limited to non-manufacturing repair or remaking activity. On that interpretation, the provision extends to processes that amount to manufacture, and the Revenue's narrower reading was rejected.

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Issues: Whether Rule 173H(2)(e) of the Central Excise Rules, 1944, permitting duty-paid goods to be retained in or brought back into a factory for being re-made, also covers processes amounting to manufacture.

Analysis: The rule expressly refers to goods that are needed to be re-made. The expression "making" is broad enough to include manufacture. On that construction, the provision is not confined to non-manufacturing repair or remaking activity and extends to cases where the process undertaken amounts to manufacture.

Conclusion: Rule 173H(2)(e) applies even where the remaking, repair or similar process amounts to manufacture, and the Revenue's restrictive interpretation was rejected.

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