Manufacture under excise law did not cover drawing or redrawing pipes and tubes before the specific chapter note came into force.

Drawing or redrawing pipes and tubes did not amount to manufacture for the period before 1-3-1997, because Chapter Note 3 to Chapter 73, which deemed that process to be manufacture, took effect only from that date. Section 2(f) of the Central Excise Act, 1944 was not sufficient by itself to treat the activity as manufacture for the earlier period. The same principle applied in decisions on drawing wire from wire rods was treated as equally applicable to pipes and tubes, and the assessee succeeded for the prior period.

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Issues: Whether, for the period prior to 1-3-1997, the process of drawing or redrawing pipes and tubes amounted to manufacture.

Analysis: The activity was held not to fall within manufacture for the prior period. The introduction of Chapter Note 3 to Chapter 73 with effect from 1-3-1997 showed that the process of drawing or redrawing pipes and tubes was deemed manufacture only from the date of its insertion. Section 2(f) of the Central Excise Act, 1944 did not by itself justify treating the process as manufacture before the specific chapter note came into force. The Tribunal also applied the principle accepted in decisions on drawing of wire from wire rods and the later Board circular, holding the principle equally applicable to pipes and tubes.

Conclusion: The process did not amount to manufacture for the period prior to 1-3-1997 and the assessee succeeded.

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