M/S. Prachi Industries vs Commissioner Of Central Excise, ...

The Supreme Court held that the process of swaging undertaken by M/s. Prachi Industries on duty-paid MS tubes constitutes 'manufacture' under Section 2(f) of the Central Excise Act, 1944. The Court clarified that the definition of 'manufacture' includes any process incidental to the completion of a manufactured product, and swaging imparts a distinct physical change to the MS tubes, thus qualifying as manufacture. The appeals by the assessee were dismissed, affirming the orders of CEGAT that had favored the Revenue.