M/S. PRACHI INDUSTRIES vs COMMNR. OF CENTRAL EXCISE, CHANDIGARH

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 or ancillary to the completion of a manufactured product, thereby affirming the Revenue's demand for duty under Heading 73.06 of the Central Excise and Tariff Act, 1985. The appeals filed by the assessee were dismissed, upholding the CEGAT's decision.