Assembly of duty-paid components into cable jointing kits is not manufacture absent a new commercially distinct product.

Mere assembly and packing of duty-paid components into cable jointing kits does not amount to manufacture unless the process brings into existence a new commercially distinct product. Applying this principle under Section 2(f) of the Central Excise Act, 1944, the Tribunal held that the kits remained a collection of components assembled for site use and did not acquire a new excisable identity. The activity was therefore not manufacture, and excise liability on that basis did not arise.

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Issues: Whether assembling and packing duty-paid components into cable jointing kits results in manufacture of a new excisable product.

Analysis: The dispute concerned cable jointing kits made from various duty-paid components packed together for use at the site of the customer. The Tribunal followed earlier precedent holding that putting together such components does not bring into existence a new commercially distinct product. On that reasoning, the activity was held not to amount to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944.

Conclusion: The activity did not amount to manufacture and the goods were not liable to excise on that basis.

Final Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Mere assembly or packing of duty-paid components, without emergence of a new commercially distinct product, does not constitute manufacture under the Central Excise law.

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