Manufacture requires a new commercially distinct product; fabrication of steel structures from duty-paid inputs was not excisable.

Fabrication of trusses, trestles, bent pipes, fabricated beams, ducting, columns and similar steel structures from duty-paid angles, sheets, plates and channels was not manufacture because the process of cutting, drilling, riveting and assembling did not create a new commodity with a distinct character, name or use. The inputs retained their original identity, and no commercially separate excisable product was shown to emerge. On that basis, central excise duty was not attracted and the demand could not be sustained in favour of the assessee.

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Issues: Whether fabrication of trusses, trestles, bent pipes, fabricated beams, ducting, columns and similar steel structures from angles, sheets, plates, channels and other duty-paid materials amounted to manufacture and attracted central excise duty.

Analysis: The fabricated items were produced by cutting, drilling, riveting and assembling duty-paid steel inputs. The conversion did not bring into existence a new commodity known in the market as a distinct and separate product with a different character, name and use. The materials retained their original identity, and the revenue failed to establish the emergence of a commercially new excisable commodity.

Conclusion: The activity did not amount to manufacture and the demand of duty could not be sustained; the finding is in favour of the assessee.

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