Manufacture test for coil conversion fails where transformer repair activity creates no new excisable product.

Conversion of aluminium or copper wire or DPC into LT/HT coils for transformer repair did not amount to manufacture because the activity did not result in a new and distinct excisable product. The Tribunal followed its earlier ruling on the assessee's identical activity for a prior period and applied that binding view to the same facts. As the process failed the test of manufacture, no duty liability arose and the duty demands were unsustainable.

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Issues: Whether the process of converting aluminium/copper wire or DPC into LT/HT coils for use in transformer repair amounted to manufacture and rendered the goods dutiable.

Analysis: The dispute turned on whether the activity resulted in a new and distinct excisable product. The same activity in the assessee's own case for the earlier period had already been held by the Tribunal not to amount to manufacture. Following that binding view on identical facts, the Tribunal held that the conversion process did not satisfy the test of manufacture and, consequently, no duty liability could arise.

Conclusion: The process undertaken by the assessee did not amount to manufacture, and the duty demands were unsustainable.

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