Cutting and welding pipes into fittings is not manufacture when the goods retain their essential character.

Cutting cupronickel process pipes to size and welding them into shapes such as tees, U-bends and L-bends did not amount to manufacture of a new excisable commodity. The goods retained their essential character as pipes, pipe joints or pipe fittings, and no new product came into existence. The stated principle is that mere cutting and shaping of pipes, without a change in identity or character, is insufficient to trigger a fresh excise levy. On that basis, the duty demand was not sustainable.

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Issues: Whether cutting of cupronickel process pipes to specific sizes and welding them into different shapes amounts to manufacture of a new commodity liable to excise duty again.

Analysis: The process undertaken was limited to cutting the pipes to size and welding them into shapes such as tees, U-s and L-s. The goods continued to remain pipes, pipe joints, or pipe fittings, and there was no change in their character. No new product came into existence. The conclusion was supported by the principle that cutting of pipes to specific sizes and shapes does not by itself create a new commodity for excise purposes.

Conclusion: The process did not amount to manufacture of a new commodity, and the duty demand could not be sustained.

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