COMMNR.OF CENTRAL EXCISE, CHENNAI-II vs M/S. TARPAULIN INTERNATIONAL

The Supreme Court held that the process of cutting, stitching, and fixing eyelets to tarpaulin fabric does not constitute 'manufacture' under the Central Excise Tariff Act, 1985. The Court emphasized that mere conversion of tarpaulin fabric into made-ups does not create a distinct marketable commodity, thus exempting it from excise duty. The Court upheld the Tribunal's decision that the activities performed by the assessee do not meet the threshold for manufacturing as defined in the Act.