M/S. SERVO-MED INDUSTRIES PVT. LTD. vs COMMNR. OF CENTRAL EXCISE, MUMBAI

The Supreme Court ruled that the sterilization of syringes and needles does not constitute 'manufacture' under Section 2(f) of the Central Excise Act, as it does not result in the emergence of a new product. The Court held that the essential character of the syringes and needles remains unchanged post-sterilization, and thus, no additional excise duty is applicable. The judgment of the CESTAT was set aside, affirming that sterilization alone does not transform the product into a new commodity attracting excise duty.