M/S. Servo-Med Industries Pvt. Ltd vs Commnr. Of Central Excise, Mumbai

The Supreme Court addressed the issue of whether the sterilization of disposable syringes and needles constitutes 'manufacture' under Section 2(f) of the Central Excise Act. The Court held that sterilization does not change the basic character of the syringes and needles, which remain disposable products, and thus, no new product emerges from this process. Consequently, the Court set aside the Tribunal's decision that had imposed excise duty on the sterilized products, affirming that the sterilization process does not attract excise duty as it does not amount to manufacture.