Packing/repacking of parts of a device is not manufacturing u/s 2(f)(iii) of Central Excise Act: CESTAT sets aside Excise Duty Demand

In a ruling that clarifies the definition of "manufacture" under the Central Excise Act, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside an excise duty demand. The tribunal held that the mere packing or repacking of the parts of a device does not amount to manufacturing as defined in Section 2(f)(iii) of the Act. The excise department had sought to levy duty on this activity. However, the CESTAT observed that for an activity to be considered manufacturing, it must result in the emergence of a new product with a different name, character, or use. Since the act of simply repacking the existing parts did not create a new commercial commodity, the tribunal concluded that no manufacturing had taken place, and therefore, no excise duty was payable.