TMI Blog2008 (1) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... large number of judgments in the impugned order to hold that the act of rewinding of coil is not an act of manufacture and it does not bring into existence new goods. 2. The learned SDR submits that the Apex Court in the case of A.P. State Electricity Board v. CCE, Hyderabad - 1994 (70) E.L.T. 3 (S.C.) has defined what goods are and once the goods become marketable, then they have to be treated as new goods. She draws further attention to the facts of the case wherein the parts are all changed and there is a transaction value to the goods and has been sold to the parties, therefore, they have to be treated as new goods. 3. The learned Consultant submits that this very issue was discussed by this Bench in the light of several judgments i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. The main issue to be decided is as to whether (i) the HV/LV coils alleged to have been manufactured and captively consumed in the repair of transformers could be classified as parts of transformers falling under Chapter sub-heading 8504.00 of the Central Excise Tariff Act, 1985 and leviable to duty. 7. The assessee is engaged in the repair work of old and defective/failed transformers received from M/s. Karnataka Electricity Board (KEB)/Karnataka Power Transmission Corporation Limited (KPTCL). The major activity involved in the repair of such transformers is replacement of High Voltage Coils/Low Voltage Coils. The inputs required for the manufacture of HV/LV Coils are Double paper covered Aluminium wire, DPC Aluminium strip, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture since the coil cannot be considered goods within the meaning of the Central Excise Act. The Civil Appeal against the above mentioned Tribunal s order was dismissed by the Hon ble Supreme Court - ref: 1996 (83) E.L.T. A106 (S.C.). In the above-mentioned decision of the Tribunal, it has also been held that for any item to be considered goods within the meaning of the Act, they must be marketable, that is to say, they must be capable of being taken to the market for being bought and sold. The issue of marketability has been well examined by the Tribunal at para 7 of the order, the extract of which is reproduced below : We are unable to accept Shri Singh s ingenious argument that getting a coil fabricated amounts to establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... length, it is covered with Kraft paper and thereafter, one more layer of DPC Aluminium strip is wound on the first layer and similarly covered with Kraft paper. After the required number of layers is completed, the coils are separated from the bobbins and the HV/LV coils come into existence. These facts are not under dispute. Applying the ratio of the decision in the above referred Tribunal decision, it is very clear that the coils cannot be considered goods within the meaning of the Central Excise Act, 1944. 11. I have perused the sample purchase Order No. 280295 dated 6-9-97 of M/s. NGEF Ltd. and Invoice No. LB/001 dated 27-1-98 of M/s. Associated Power Equipment Pvt. Ltd., which has been relied upon in the Show Cause Notice to estab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above, I pass the following order : ORDER I drop further proceedings initiated in the Show Cause Notice F.No. DGCEI/V/01/2002-2003/BRU dated 22-8-2003 against M/s. Shri Gajanana Engineers, Transformer Repair Centre, Mathikere, Bangalore. 2. The Revenue is aggrieved with this finding and contends that new product arises in this matter and, therefore, the conversion of DPC wires into coils brings into existence new product. 3. The learned JDR argued on this basis. 4. The learned Consultant submits that this very issue came up for consideration before the Tribunal in the case of CCE, Indore v. Gwalior Electrical Industries - 2000 (122) E.L.T. 833 (Tribunal) wherein the Tribunal, after due consideration, held that no new coil arise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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