Manufacture in excise and duty demand challenge fail where limestone screening creates a marketable product and omitted arguments were not reviewed first.

Crushing limestone into chips of desired sizes by screening was treated as manufacture for excise purposes because the process produced a marketable product of a distinct size, and that finding was left undisturbed. A challenge to the duty demand under Section 11A based on the High Court's quashing of penalty for bona fide belief was not entertained, because the point had not been recorded or decided by the High Court and the proper course was to seek review there first. The appeal failed in full and the High Court's decision remained undisturbed.

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Issues: (i) Whether crushing limestone into chips of desired sizes by screening amounted to manufacture for excise purposes. (ii) Whether the demand of duty under Section 11A could be assailed on the basis that the High Court had quashed the penalty on the ground of bona fide belief.

Issue (i): Whether crushing limestone into chips of desired sizes by screening amounted to manufacture for excise purposes.

Analysis: The process was treated as producing limestone chips of a specific size, a marketable product. The factual foundation regarding the exact process was not properly placed before the appropriate forum, and the challenge was raised directly before the High Court. In those circumstances, there was no basis to interfere with the High Court's view on manufacture.

Conclusion: The finding that the process amounted to manufacture was left undisturbed and the assessee did not succeed on this issue.

Issue (ii): Whether the demand of duty under Section 11A could be assailed on the basis that the High Court had quashed the penalty on the ground of bona fide belief.

Analysis: The asserted challenge was not recorded or answered by the High Court. The proper course, if the contention had been omitted from consideration, was to seek review before the High Court rather than raise it for the first time before the Supreme Court.

Conclusion: No relief was granted on this issue and the challenge to the duty demand was not entertained.

Final Conclusion: The appeal failed in its entirety and the High Court's decision was left undisturbed.

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