Difference between Manufacturing a Product and Processing of a Product are given below:
Manufacture involves a series of processes, whereas a process is one of the activities undertaken for manufacture of a product from input materials. The definition of Manufacture under section 2(f) of the Central Excise Tariff Act, 1944 itself clarifies that process which is incidental or ancillary to the manufacture of a product is also manufacture under law.
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If there is no essential difference in identity between the original article and processed article, then no manufacture under excise law has taken place. Although input material has undergone a degree of processing, it must be regarded as still retaining its original identity.
Where the article retains its substantial identity through the stage of processing, it could be said to have been merely processed and not manufactured. If there are separate and distinct processes of manufacture and each such process results in such a transformation that a new and distinct article known in the market comes into being, then each process would be subject to duty.
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