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TMI Blog1982 (7) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... t the petitioner should also pay duty on the repaired transformers under Tariff Item 68. In the appeal the Appellate Collector upheld the Assistant Collector s order and also ruled that notification No. 119/75 which related to job-work did not apply to the petitioners case. 3. In the revision application, the petitioners have mainly reiterated that they are repairing the old and unserviceable transformers and in the process of such repair they may have to change the coils or the bushings or replace the insufting material and clean the tank and change the transformer s oil. In the same process they may also have to remove dents and paints the external surface of the tank and finally after testing the transformer despatch it to the owners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant Collector (1978 E.L.T. J 180) the Hon ble Court held that the test of an article being a manufactured article, is that it must be known to the market as having distinctive name, character and use. This test must be fulfilled when excise duty is sought to be levied. In the case of Union of India v. Delhi Cloth Mills (A.I.R. 1963 S.C. 791) the Hon ble Supreme Court has held that the word manufacture signified the bringing into existence a new substance and it did not mean merely producing some change in a substance. Same was the ratio of the case of Devi Das v. State of Punjab (A.I.R. 1957 S.C. 1895). and South Bihar Sugar Mills v. of Union India (A.I.R. 1968 S.C. 922), Allenbury Engineer v. Dalmia (A.I.R. 1973 S.C. 428) and two earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods does not amount to manufacture under section 2(f) of the Act 1, of 1944. In a case reported as 1977 E.L.T. (J 84) also it was held that the process of reconditioning is similar to repairing and the same does not amount to manufacturing under Section 2(f) of the Act of 1944. The petitioners also submitted that the impugned order in revision before the Government is non-sequitur. In his reasoning the learned Appellate Collector agreed with the contentions of the petitioner hearing by holding that: The present case is not covered by the Notification No. 119/75 , but then dismissed the appeal in substance. It is submitted the reasoning in the impugned order has no nexus in the inference/decision in this case. 7. Government obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being immaterial whether the transformer was capable of being used as transformer or it was burnt out. Once it has been recognised that what was brought to the factory was a transformer though not functioning properly or not functioning at all then what job has been conducted on the transformer is only of repair or reconditioning so as to make it serviceable. An analogy would be the repair of a car engine in workshop where the entire boring, change of cylinders and piston rings, etc., etc. denting and upholstery work is conducted. Could it be said that a new car has been manufactured? The answer would be in negative. Similar]y in the case of refrigerator compressor, if it is burnt out it would not be said that the refrigerator has been manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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