1997 (3) TMI 120 - SC - Central Excise

Summary

Issues involved: Determination of whether brake lining blanks, after undergoing drilling, trimming, and chamfering, amount to manufacturing under Section 2(f) of the Central Excises and Salt Act, 1944.

Judgment Summary:

1. The High Court analyzed whether the process of drilling, trimming, and chamfering brake lining blanks constitutes manufacturing under Section 2(f) of the Central Excises and Salt Act, 1944. The court emphasized that if a process brings about a change in the product, enhancing its utility, it qualifies as manufacturing. The court highlighted the significance of the "character or use" test in determining manufacturing, irrespective of whether the product undergoes a single or multiple processes.

2. The learned Single Judge and the Division Bench affirmed that brake lining blanks, without holes and trimming, were unusable by motor vehicle owners. It was only after undergoing the mentioned processes that the blanks became suitable for automobile manufacturers to incorporate into their vehicles. Both courts correctly applied the test for manufacturing, leading to the dismissal of the appeals without costs.