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2023 (4) TMI 311 - AT - Central ExciseCENVAT Credit - Process amounting to manufacture or not - receipt of unprocessed Ferro Silicon cake on payment of central Excise duty and carrying out the activities of grinding, sizing and packing, in the factory - It is the allegation of the Revenue that since these processes of grinding, sizing and packing of Ferro Silicon cakes does not amount to manufacture - HELD THAT:- Section 2(f) of the Central Excise Act,1944 (CEA) defines "manufacture" as: "manufacture" includes any process: (i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the Central Excise Tariff Act . Thus any process undertaken on an input to make it marketable amounts to ‘manufacture’ as per section 2 (f) of the CETA1944 - In the present case, the ferro silicon cake received in the factory were bigger size . Without undertaking the processes of sizing, grinding and packaging they cannot be marketed as such. The customers may require it in different sizes. Hence sizing of the Ferro Silicon cake according to the requirement of each customer is an activity amounting to ‘manufacture’ as per section 2 (f) of CETA, 1944. The processes of grinding, sizing and packaging undertaken by the Appellant on the inputs namely ferro silicon cake, in their factory amounts to ‘manufacture’ as they are all essential processes for making the goods marketable, as per Section 2(f) of the CETA 1944 - there is no infirmity in the availment of CENVAT credit on the inputs received by the Appellant - Appeal allowed.
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