Doubts have been expressed as to whether the conversion of steel tubes into oxygen lancing pipes amount to manufacture or not.

2.     The steel pipes and tubes are classifiable under Chapter 73 of the Central Excise Tariff Act, 1985. The steel tubes are cold drawn and in the process, the outer diameters get reduced. After cleaning the end of the tubes and removing the burs, the same are threaded and steel socket is fixed thereon. These and products are called oxygen lancing pipes.

3.     The matter as been examined. The oxygen lancing pipes are used for feeding oxygen in the process of oxygen lancing. The process of oxygen lancing is used principally for cutting heavy section steel and cast iron. The oxygen is fed to the cutting zone through such pipes and such pops get consumed as the cutting action proceeds. The final product viz. oxygen lancing pipe has a different name, character and use as compared to the raw material viz. steel tube.

4.     It is, therefore, clarified that conversion of steel pipes/ tubes into oxygen lancing pipes would amount to "manufacture" as the final product has a distinctive name, character and use.