TMI Blog2014 (7) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... se duty has been paid and all these items are packed as CNG kits along with a diagram and instruction manual explaining how the kit is to be installed in a particular vehicle. It is the various components and installation manual which are sold as CNG kit. The appellant do not manufacture any of the above items. There is also no dispute that on the sale of the CNG kit, sales tax is paid on the value of the CNG kit and wherever the appellant installed the kit in a customer's vehicle, service tax is paid on the installation charges - impugned order is not sustainable - Decided in favour of assessee. - Appeals Nos.E/58707-58708/2013 - Final Order Nos. A/51740-51741/2014-EX(DB) - Dated:- 31-3-2014 - G Raghuram and Rakesh Kumar, JJ. For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only the Value Added Tax (VAT) or central sales tax (CST). The department accordingly issued a show cause notice dated 8.11.2012 for demand of central excise duty amounting to ₹ 4,94,22,622/- on the CNG kits sold by the appellant during the period from 2007 to 17.10.2011 along with interest thereon under Section 11AA and also for imposition of penalty on them under Section 11 AC. Since during the inquiry period, the appellant had deposited an amount of ₹ 25 Lakhs, the show cause notice sought appropriation of the above amount. The above show cause notice was adjudicated by the Commissioner of Central Excise, Delhi vide order-in-original dated 10.04.2013 by which the above mentioned central excise duty demand of ₹ 4,94,22,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not amount to manufacture, that Hon'ble Andhra Pradesh High in the case of XL Telecom Limited Vs. Superintendent of Central Excise, Hyderabad - 1999 (105) ELT 263 (A.P.) has held that putting together various duty paid items in a kit called cable jointing kit does not amount to manufacture, as except that the kit has a distinct name, other tests laid down in various judgments of the Apex Court for attracting central excise duty are not satisfied, that the Tribunal in the case of Dalmia Industries Ltd. Vs. CCE, Jaipur reported in 1999 (112) ELT 305 (Tribunal) has held that buying various articles - bottles, feeder nipples and bottle lids from diverse sources in the market, packing them in a combing pack after sterilization and selling th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee are classifiable under heading no. 8409 of the Tariff as parts suitable for use wholly and principally with engines of headings 8407 and 8408. He also emphasized that the very act of collecting and packing together the various items required for conversion of a vehicle into a CNG run vehicle would amount to manufacture. 5. We have considered the submissions from both the sides and perused the records. 6. The appellant prepare the kit consisting of the items required for converting a motor vehicle into CNG run vehicle. For this purpose, some items like Electric Central Units (ECUS), Regulators, injectors, filters, etc. are imported on payment of appropriate customs duty and the other items - CNG cylinder, high pressure pip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t procuring sprockets, and packing them after testing and branding along with automotive chains and connecting links in a kit does not amount to manufacture, even if various items of the kit after being procured from different sources had been subjected to testing and branding and this judgement of the Tribunal has also been affirmed by the Apex Court. The ratio, of the above judgments of the Tribunal, Hon'ble Andhra Pradesh High Court and of the Apex Court is squarely applicable to the facts of this case. The judgement of the Tribunal in the case of Trans Engg. Ltd. (supra) is not applicable to the facts of this case as in this case, the Tribunal has not gone into the question as to whether mere packing of different items required for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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