M/S. O.K. PLAY (INDIA) LTD. vs COMMNR. OF CENTRAL EXCISE, NEW DELHI

The Supreme Court addressed whether the process of converting Low Density Polyethylene (LDPE) and High Density Polyethylene (HDPE) granules into moulding powder constitutes 'manufacture' under Section 2(f) of the Central Excise Act, 1944. The Court upheld the findings of the Commissioner (Adjudication) that such conversion does amount to 'manufacture' as per note 6(b) to Chapter 39 of the Central Excise Tariff Act, 1985, and confirmed the duty demand on the grounds that the moulding powder is excisable goods under Section 2(d) of the 1944 Rules. The Court ruled in favor of the revenue, affirming the duty liability of the assessee.