COLLECTOR OF CENTRAL EXCISE, BOMBAY vs S.D. FINE CHEMICALS (P) LTD.

The Supreme Court addressed the issue of whether the processes of distillation and recrystallisation performed by M/s. S.D.Fine Chemical Pvt. Ltd. constitute 'manufacture' under the Central Excise Act, 1944. The Court held that the processes do not result in a new commodity, as the chemicals retain their identity and name post-processing, thus exempting the respondent from excise duty. The decision of the Customs, Excise and Gold (Control) Appellate Tribunal was upheld, affirming that the processes merely enhance purity without altering the fundamental nature of the chemicals involved.