Process of Cutting Jumbo and Slitting does not fall under Definition of Manufacturing as per Section 2 (f) of Central Excise Tariff Act: CESTAT

The Hyderabad bench of CESTAT ruled that cutting jumbo rolls and slitting do not constitute manufacturing under Section 2(f) of the Central Excise Tariff Act. The appellant, registered with the Central Excise department, processes stainless steel pipes by upsetting, heat treatment, inspection, testing, threading, and coating for oil and gas exploration. \r

They also manufacture couplings affixed to these pipes, paying excise duty on the couplings. They undertake similar activities on a job work basis for M/s ISMT. Citing the Supreme Court's precedent in CCE vs. SR Tissues Pvt Ltd, the bench determined that such processes do not alter the character or end-use of the goods, hence do not amount to manufacture. \r

The tribunal overturned revenue contentions, citing improper SCNs and allowed the appeals.