Manufacture test under excise law: converting enzyme blend powder into tablets without changing identity does not create a new commodity.

Converting enzyme blend powder into tablets and strips did not amount to manufacture because the test under Section 2(f) of the Central Excise Act, 1944 required a new and distinct product with a different name, character or commercial use. The majority found the powder was only compacted for convenience and marketability, with no addition of material and no real change in identity, so the essential character remained unchanged. A deeming note in another chapter was held not to alter that result for the chapter in question.

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Issues: Whether converting enzyme blend powder into tablets and putting them into strips amounts to manufacture.

Analysis: The relevant test was whether the processing brought into existence a new and distinct product with a different name, character or commercial use under Section 2(f) of the Central Excise Act, 1944. The majority held that the powder was merely compacted into tablets for convenience and marketability, without addition of any material or any real change in identity. It was found that the product did not lose its essential identity and that the conversion into tablets, on the facts, did not create a new commodity. The presence of a specific deeming note in another chapter was held not to compel the opposite result for the chapter in question.

Conclusion: Conversion of enzyme blend powder into tablets did not amount to manufacture, and the appeal succeeded.

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