Manufacture test for bitumen processing rejected where air blowing and drum repacking were held not to create a new excisable product.

Air blowing straight grade bitumen into blown grade bitumen did not amount to manufacture under Central Excise law, as the issue was already covered by the Tribunal's earlier decision in the assessee's own case. Repacking bitumen from bulk into drums also did not amount to manufacture in the absence of a relevant chapter note. Applying that reasoning to identical processes, the impugned orders were set aside in favour of the assessee.

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Issues: Whether conversion of straight grade bitumen into blown grade bitumen by air blowing, and packing of bitumen in drums from bulk receipt, amounted to manufacture under the Central Excise law.

Analysis: The issue was found to be squarely covered by the Tribunal's earlier decision in the assessees' own case, where it was held that air blowing of straight grade bitumen into air blown grade bitumen does not amount to manufacture. It was also held that, in the absence of a relevant chapter note, repacking into smaller containers does not amount to manufacture. The same reasoning applied to the present demands, which were founded on identical processes.

Conclusion: The processes in question did not amount to manufacture, and the impugned orders were set aside in favour of the assessee.

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