Software loading is not manufacture under central excise where the imported device remains a complete article with unchanged identity.

Loading business software into a Nucleus Device does not constitute manufacture under central excise law because the imported device was already a complete article with basic input-output functionality and embedded primary features. Software loading only improved utility and did not create a new product with a distinct name, character, or use. The process therefore fell outside the ordinary meaning of manufacture under the Central Excise Act, 1944 and outside any deemed manufacture provision. Chapter Note 10 of Chapter 85 applied only to goods of heading 8523, not to the device classified under heading 8517, and no chapter note covered software loading on such goods as manufacture.

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Issues: Whether loading of business software into the Nucleus Device constitutes manufacture under the Central Excise law.

Analysis: The device, as imported, was found to be a complete article with basic input-output system and primary functionality already embedded. Loading of software only enhanced utility and did not bring into existence a new and different product having a distinct name, character or use. The process did not fall within the ordinary meaning of manufacture under Section 2(f) of the Central Excise Act, 1944, nor within any deemed manufacture provision. Chapter Note 10 of Chapter 85 of the Central Excise Tariff Act, 1985 applied to goods of heading 8523 and not to the device classifiable under heading 8517, and no chapter note covered software loading on such goods as manufacture.

Conclusion: Loading of business software into the Nucleus Device does not constitute manufacture under the Central Excise law and the answer is in favour of the applicant.

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