Process which do not amount to manufacture - Central Excise Practice Manual (OLD) - Central Excise

Processes not amount to manufacture In central excise, the concept of manufacture and excisability is a very much technical aspect. This the reason, till now no complete definition of manufacture is provided in the central excise law. However, on the basis of facts, circumstances and nature of process the honorable Supreme Court and other courts including tribunal has decided various issues related to what constitute manufacture. Here we discuss the process which was held by the various courts as not amount to manufacture. Indeed, it is beyond the scope of this chapter to cover all the decisions, therefore we are enumerating certain important processes which were held as not amount to manufacture. Note:- All the processes discussed herein below are subject to deemed manufacture within the meaning of Section Note, Chapter Note or under any other provisions of Central Excise Law. 1 Cutting or slitting of steel sheets in coil form into specific sizes is not manufacture. 2 Reduction of diameter of 'MS Bars' so as to bring into existence bright bars does not amount to manufacture. 3 Melting of scrap to obtain Aluminum scrap is not amounting to manufacture. Or remelting of a product to produce the same article is not manufacturing activity. 4 Conversion of petrol car into diesel car or CNG car does not amount to manufacture. 5 Pulverization of LDPE / HDPE granules so as to covert into moulding powder is not manufacture. 6 Merely packing activity is not a manufacturing activity. 7 Mixing of scent / flavors or other articles is not a manufacturing activity. However mixing of some ingredients may constitute manufacture if new identifiable commodity emerges. 8 Addition of toppings such as nuts, sauce, cream, fruit milk, sugar syrup etc. to the Ice-cream as Sunday cakes / Gloss in a restaurant is not a manufacturing activity. 9 Mere fixing of brand name or sticker alongwith some slogan does not constitute manufacture. 10 Putting together various duty paid articles in a carton or kit is not manufacture, where no process involved except that all items are put together in one box. 11 Assembly or fabrication of tanks / plants at site and embedded to earth in such a way that the same can not be removed without dismantling process, held that not amount to manufacture. 12 Sawn timber or cut pieces of timber are not products of manufacturing process. 13 Obtaining transformer oil from burnt oil is not a manufacturing process. 14 Up gradation of old computer is not amount to manufacture. 15 Repairing and recondition activity in general are not manufacturing activity. 16 Generation of scrap from dismantling of capital goods is not a manufacturing activity. 17 Electroplating of meal is not a manufacturing activity. 18 Placing bought out components like pistons, piston rings, gudgeon pins and circlips is a not a manufacturing activity. 19 Assembly of CKD / SKD packs is not manufacture. 20 Mere existence of exemption notification does not mean that product was excisable.