Assembly of components can amount to manufacture when a distinct commercial product emerges, even within the same tariff entry.

Assembling the modular terminal rosette from components was treated as manufacture because the fixed and connected parts emerged as a distinct functional telephone junction box with a different identity, use and character; the fact that both the inputs and finished article fell within the same tariff entry did not prevent that conclusion. The remaining disputes were not finally decided and were remitted for de novo adjudication, with the assessee permitted to raise all contentions, including limitation, before the original authority. The finding on manufacture was affirmed, while other issues were left open for fresh consideration.

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Issues: (i) Whether assembling the modular terminal rosette from components amounts to manufacture; (ii) whether the matter was required to be remanded for fresh adjudication on issues other than manufacture, including limitation.

Issue (i): Whether assembling the modular terminal rosette from components amounts to manufacture.

Analysis: The assembled product emerged from fixing and connecting the components into a functional telephone junction box with a different identity, use and character from the parts. A commercially different and identifiable product came into existence on assembly and testing, and the fact that the parts and finished article may fall within the same tariff entry did not prevent the activity from constituting manufacture.

Conclusion: The activity amounted to manufacture and this finding went against the assessee.

Issue (ii): Whether the matter was required to be remanded for fresh adjudication on issues other than manufacture, including limitation.

Analysis: The appellate authority had remitted the case for fresh decision while sustaining the manufacture finding. The remand was treated as open on all other issues, and the assessee was permitted to raise all contentions, including limitation, before the original authority in de novo proceedings.

Conclusion: The matter was remanded for fresh adjudication on all issues except manufacture, and the limitation plea was left open.

Final Conclusion: The finding of manufacture was affirmed, but the remaining disputes were sent back for de novo consideration, so the appeals succeeded only to the extent of remand.

Ratio Decidendi: Assembly of components into a distinct functional commercial product amounts to manufacture, even if the product continues to fall within the same tariff entry, and issues not finally decided may be left for de novo adjudication on remand.

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