Larger Bench of the Delhi High Court has answered in negative the question as to whether the process to which used and old tyres are subjected to produce two or more pieces of cut tyres is ‘manufacture’ within the meaning of Section 2(f) of the Central Excise Act, 1944.
Relying on Apex Court decision in the case of Servo-Med Industries, the Court in the case of Tina rubber Infrastructure Ltd. v. Union of India was of the view that the essential characters of the goods remain the same.
It was also held that there was no requirement to reconsider the decision of the Court in the case of Modi Rubber Ltd., since that decision was impliedly approved by the Supreme Court in the case of Ahmedabad Electricity Co. Ltd.