No manufacture in export of bought-out goods bars rebate and re-credit of debited Cenvat credit.

The activity was held not to amount to manufacture because the exported goods were a supplied JCB machine with standard accessories, not a customised product made by the applicant. The export order and packing list treated the engine, cold start kit and accessories as separate items, and the alleged fitting or modification at the applicant's end was not supported. As the transaction was treated as trading in bought-out goods rather than manufacture under Section 2(f) of the Central Excise Act, rebate on export was not admissible and the claim for re-credit of debited Cenvat credit was rejected.

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Issues: Whether the activity undertaken by the applicant amounted to manufacture so as to justify rebate on export of the goods and consequential re-credit of the duty debited through Cenvat credit.

Analysis: The exported goods were found to be a supplied JCB machine with standard accessories and not a customised product manufactured by the applicant. The export order and packing list showed the engine, cold start kit and accessories as separate items, and the claimed fitting or modification at the applicant's end was not corroborated. The applicant was not registered for such manufacturing activity, and the transaction was treated as trading in bought-out goods rather than manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944.

Conclusion: The activity did not amount to manufacture, rebate was not admissible, and the claim for re-credit of the debited Cenvat amount was also rejected.

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