Instances of Goods/Processes not amounting to Manufacture under Manufacture :
| Final Product | Product/process/activity | Citation |
| Aluminium | Cutting, drilling and punching of aluminium section | CCE v. Ajit India Pvt. Ltd. 2000 (119) E.L.T. 274 (S.C.) |
| Aluminium cans (torch bodies) | Aluminium slugs converted to intermediate product | Union Carbide India Ltd. v. CCE 1986 (24) E.L.T. 169 (S.C.); Geep Industrial Syndicate Ltd. v. CG 1987 (31) E.L.T. 865 (S.C.) |
| Butter | Stirring of cream | State of Tamil Nadu v. Bharat Dairy Farm 1992 (61) E.L.T. 25 (Mad.) |
| BOPP films | Winding, slitting and packing | CC & CE V. Crown Tapes Pvt. Ltd. 2009 (233) E.L.T.357 (Tri.Ahmd) |
| Cable joining kits | Putting together different duty paid items not manufacture | XI Telecom Ltd. v. CCE 1999 (105) E.L.T. 263 (A.P.) |
| Chilled water | Chilling of water | Farm & Co. v. CCE 1987 (30) E.L.T. 541 (T) |
| Chilly powder | Pulverising of chilly | Namputhiris Pickle Industries v. State of Kerala 194 (92) STC 1 (S.C.) |
| Cinder | Burning in boiler of coal | CCE V. Papyrus Papers, 1983 (33) E.L.T.97 (T), Union of India V. Ahmedabad Electricity Co. 2003 (158) E.L.T. 3 (SC) |
| Coffee | Reprocessing of coffee | CCE v. Brooke Bond India Ltd. 1998 (101) E.L.T. 2965 (T-SZB) |
| Coloured/ printed paper | Colouring/printing of white paper | Swastic Products v. SCE 1980 E.L.T. 164 (Guj.) |
| Coloured plastic granules | Conversion of plastic granules | Vadodara CTN No. 61/92, dated 22-7- 1992, 1992 (60) E.L.T. T43 |
| Computer under Heading No. 84.71 | Upgradation does not amount to manufacture Installation at customers site not manufacture | CBEC Circular No. 454/ 20/99-CX, dated 12-4-1999
Universal Micro Systems v. CCE 1999 (107) E.L.T. 505 (T) |
| Curry powder rasam powder, masala powder | Mixing of chilly powder coriander powder | State of Tamil Nadu v. SVS Natarajan & Sons 1992 84STC (Mad.) |
| Cycle | Assembling of cycle parts | T.I. Cycles of India v. U.O.I. 1983 E.L.T. 681 (Mad.) |
| Feeding bottle | Putting together bought out parts like bottles, nipples, lids etc. is not manufacture | Dalmia Industries Ltd. v. CCE 1999 (112) E.L.T. 305 (T) |
| Filler wire | Straightening and cutting into required sizes of wires (stainless steel) | D & H Sechron Electrodes Pvt. Ltd. v. CCE 1990 (40) E.L.T. 401 (T) |
| Furniture (for resale) | Polishing/colouring of old furniture | CST v. Musarafalli Kutbuddin 35 STC 503 (Bom.) CST v. Habib Kasambai 35 STC 560 (Bom.) |
| Garland/ bouquets | Preparation of flowers | Sudhir Ch. Mukherjee v. Addl. Commissioner of CT 1976 (37) STC 554 (Cal.) |
| Ingots/billets | Recycling of aluminium waste | Salco Extrusions P. Ltd. v. CCE 1984 (16) E.L.T. 356 (T) |
| Jelly (stone) (See contra decision under Table below) | Breaking of boulders | Reliable Rock Builders v. State of Karnataka, 49 STC 110 (Kant); Kher Stone Crushers v. G.M. District Industries Centre, 1992 (62) E.L.T. 586 (M.P.) |
| MS Scrap, borings, turnings, etc. | Generated during maintenance and repair work | Prism Cement Ltd. V. CCE 2008 (232) E.L.T 564 (T) |
| Pan-masala | Mixing of supari, variyali, dhana dal, etc | State of Gujarat v. Sukhram Jagannath 50 STC 76 (Guj.) |
| Paper | Polishing/ printing of paper | Modern Paper Industries v. Union of India 1983 ECR 636 D (Bom.) |
| Pillows | Covering an uncovered pillow | DP Foam Pvt. Ltd. v. CCE 1999 (106) E.L.T. 544 (T) |
| Pine apple | Slicing of pineapple | Dy. CST v. PIO Food packers, 1980 (6) E.L.T. 343 (S.C.) |
| Planks/rafters | Sawing of timber logs | Y. Mohiden Kunhi and Others v. CCE 1986 (23) E.L.T. 293 (Kar.) See also Sanghvi Enterprises v. CCE 1984 (16) E.L.T. 317 (T) CCE v. Kutty Flush Doors & Furniture P.d. 1988 (35) E.L.T. 6 (S.C.). Departmental appeal dismissed 1997 (89) E.L.T. A105. |
| Powdered pepper/ Turmeric | Powdering of pepper/turmeric | Mahabirprasad Bishiwala v. State of W.B. 31 STC 628 (Cal.) Krishna Chander Dutta (Spice) Pvt. Ltd. v. CTO (1994) 93 STC 180 (S.C.) 1994 (70) E.L.T. 501 (S.C.) |
| Reels of lesser width and diameter | Slitting and rewinding of paper (jumbo reels) | CCE v. Reelco Paper Products (P) Ltd. 1989 (40) E.L.T. 435 (T) |
| Turmeric powder | Pulverising of turmeric | Krishna Chander Dutta (Spice) P. Ltd. v. CTO 1994 (70) E.L.T. 501 (S.C.) |
| Water | Process of removing chemicals to make it soft without purifying | McDowel Co. Ltd. v. CCE 1999 (105) E.L.T. 577 (T) |
Pickling and oiling is not manufacture: “Pickling is removing surface oxides from metals by chemical or electro chemical reaction” and pickle means “the chemical removal of surface oxides (scale) and other contaminants such as dirt from metal by immersion in an aqueous acid solution.” Therefore it can be said that the process of pickling is only a chemical cleaning process to remove scales and dirt from the metal by immersion in chemical solution and does not result in emergence of any new commercially different commodity.
Therefore it has been clarified that mere undertaking the process of oiling and pickling as preparatory steps do not amount to manufacture [Circular No. 927/17/2010-CX dated 24.06.2010].