Swaging transforms MS tubes into a new product and amounts to manufacture under excise law.

Swaging of duty-paid MS tubes or pipes by dies amounts to manufacture under Section 2(f) of the Central Excise Act, 1944 where the process causes a permanent and distinguishable transformation. The Court found that swaging imparted folds and changed the shape, form and user of the original tube or pipe, producing a workpiece with a new identity rather than a mere variation in length or size. Earlier decisions on simple welding or size changes were held inapplicable on these facts. The process therefore gives rise to a new product with lasting character and distinct use.

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Issues: Whether the swaging of duty-paid MS tubes or pipes by use of dies amounts to manufacture under Section 2(f) of the Central Excise Act, 1944.

Analysis: The process of swaging was found to impart folds and a permanent change in shape, form and user to the plane MS tube or pipe. The Court held that manufacture occurs when a process brings into existence a workpiece with a distinguishable identity and a change of lasting character. On the facts, the swaging machine with different dies produced profiles of a different shape and use, and the resulting product was not merely the same tube or pipe in a different length or form. The earlier decisions dealing with mere welding or change in size were held inapplicable on the facts.

Conclusion: Swaging amounts to manufacture under Section 2(f) of the Central Excise Act, 1944, and the assessee's challenge failed.

Ratio Decidendi: A process amounts to manufacture when it causes a permanent and distinguishable transformation in the article, bringing into existence a new product with a different identity, shape or user.

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