Slitting of steel coils is not manufacture for excise duty, following prior precedent and circular guidance.

Slitting or shearing of steel coils to produce sheets is not manufacture for Central Excise purposes. The Supreme Court treated the issue as already concluded by an earlier decision that slitting and cutting of steel sheets does not amount to manufacture, and it followed that view while also accepting the position reflected in the cited circulars. On that basis, the activity was not subject to levy as manufacture, and the issue was resolved in favour of the assessee and against the Revenue.

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Issues: Whether slitting or shearing of steel coils to produce sheets amounts to manufacture for levy of Central Excise Duty.

Analysis: The question was treated as concluded by the earlier decision holding that slitting and cutting of steel sheets does not amount to manufacture. The Court followed that decision and accepted the view reflected in the cited circulars.

Conclusion: Slitting or shearing of steel coils to produce sheets does not amount to manufacture, and the issue was answered in favour of the assessee and against the Revenue.

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