Manufacture and marketability test excludes fabricated aluminium structure from central excise duty when no new product emerges.

Aluminium sheets bought in cut sizes, drilled and fastened to a steel framework as roof and side coverings were held not to result in a new commercially distinct product. Applying the settled test that central excise is attracted only when manufacture produces identifiable and marketable goods with a different name, character or use, the fabricated aluminium structure was treated as non-excisable. The Revenue's reliance on Sirpur Paper Mills was distinguished because that case involved a different factual setting in which a new marketable commodity had emerged. No central excise duty was therefore leviable on the aluminium structure.

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Issues: Whether the aluminium structure fabricated and fixed in the factory premises amounted to manufacture of excisable goods and was liable to central excise duty under sub-heading 7610.90.

Analysis: The aluminium sheets were purchased in cut sizes, drilled, placed as roof and side coverings, and fastened to the steel structure with nuts, bolts and other fasteners. The process did not produce any new commercially distinct product with a different name, character or use. Applying the principle that duty is attracted only when new identifiable and marketable goods emerge from manufacture, and following the ratio concerning manufacture and marketability of structurals, the fabricated structure was not shown to be excisable. The decision relied upon by the Revenue on Sirpur Paper Mills was distinguished as involving a different factual setting where a new marketable commodity had come into existence.

Conclusion: The process did not amount to manufacture and no central excise duty was leviable on the aluminium structure.

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