Mere crushing, grinding and sieving of soap stone does not amount to manufacture under central excise law.

Crushing, grinding and sieving soap stone into powder was held not to amount to manufacture under central excise law. The Tribunal found that the cited tariff chapter note and the authorities relied on by the department did not cover the processing in question, and followed the later judicial view that similar mineral processing is outside the definition of manufacture unless the statute or tariff note expressly provides otherwise. The assessee therefore succeeded, the excise demand did not survive, and consequential relief was granted.

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Issues: Whether crushing, grinding and sieving of soap stone into soap stone powder amounted to manufacture under the Central Excise law.

Analysis: The impugned view treated the activity as manufacture under Section 2(f) of the Central Excise Act, 1944 and relied on Chapter 25 of the Central Excise Tariff Act, 1985. The Tribunal found that the authorities relied upon were not relevant and that the chapter note cited did not cover the activity in question. The Tribunal relied on the later judicial view that similar processing of soap stone did not amount to manufacture.

Conclusion: The process of crushing, grinding and sieving soap stone to obtain soap stone powder did not amount to manufacture.

Final Conclusion: The assessee succeeded and the demand did not survive, with consequential relief granted.

Ratio Decidendi: Mere crushing, grinding and sieving of a mineral into powder does not amount to manufacture unless the statutory definition or tariff note expressly brings such processing within manufacture.

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