CESTAT Rules Hydrogen Gas Compression not ‘Manufacture’, Sets Aside Excise Duty Demand

The CESTAT ruled that hydrogen gas compression does not constitute 'manufacture' under the Excise Act and set aside an excise duty demand. The tribunal held that the process of compressing hydrogen gas merely changes its physical state without resulting in a commercially different product with a distinct name, character, and use. Therefore, it does not qualify as a manufacturing activity liable to excise duty. This decision clarifies the scope of 'manufacture' under excise law and provides relief to businesses involved in similar processes that do not fundamentally alter the nature of the goods.