Manufacture by transformation into a distinct commercial commodity defeats refund of duty paid on earth pipes.

Cutting, drilling, punching and pressing galvanized pipes into earth pipes amounted to manufacture because the processed goods emerged as a distinct commercial commodity with a different name, character and use. On that basis, duty paid on clearance of the earth pipes was not treated as erroneous payment, so refund was denied. The note follows the connected appeals approach that transformation into earth pipes satisfied the manufacture test and foreclosed restitution of the duty paid.

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Issues: Whether the processes of cutting, drilling, punching and pressing galvanized pipes into earth pipes amounted to manufacture, and whether the duty paid on clearance of such earth pipes was refundable.

Analysis: The Tribunal noted that the same issue had already been decided in connected appeals, where it was held that the galvanized pipe, after the processes undertaken by the assessee, became an earth pipe, which was a different commercial commodity having a distinct name, character and use. In view of that determination, the duty paid on clearance of the earth pipes could not be treated as erroneous payment.

Conclusion: The processes constituted manufacture, and the assessee was not entitled to refund of the duty paid.

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