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TMI Blog2016 (12) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... a distinct name, use and commercial identity, it would acquire the trait of 'manufacture'. In view of above, the question is answered in favour of the assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... te and the Gas Cylinder Rules, 2004. The manufacturing, storage and dispensing of compressed natural gas (CNG) can only be started after the grant of license by the Petroleum Explosive Saftey Organization. The Rule 2(viii) of the Gas Cylinder Rules, 2004 defines, compressed natural gas' as mixture of hydro carbon gases and fibres consisting mainly of Methane in gaseous form which has been compressed for use as automotive fuel. Further, Rule 2(xxxii) defines 'manufacture of gas' as filling of cylinder with any compressed gas and also includes transfer of compressed gas from one cylinder to any other cylinder. The appellant-company is registered under the Central Excise Act as a 'manufacture of CNG.' In the certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l has come to the conclusion that the compression of natural gas into compressed natural gas does not result in bringing into existence in a new product and the activity of compressing the natural into compressed natural gas would not amount to manufacture or production. The Tribunal records in paragraph 5 as hereunder: "We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and the judgment cited by learned A.R. of the assessee. We find that it is noted by CIT (A) on page No.6 of his order that the assessee's activity of conversion of natural gas to compressed natural gas does not amount to bringing out a new and distinct object or article or thing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of LPG, the same is not saleable unless it is bottled and therefore, bottling of LPG into cylinders makes LPC saleable is not otherwise saleable. There is difference in the facts, In our considered opinion, the judgment of Hon'ble Bombay High Court is not applicable in the facts of the present case. Since compression of natural gas into CNG does not result into bringing into existence any new product, in our considered opinion, this activity is neither manufacture nor production and hence, no interference is called for in the order of CIT (A) on this issue. Accordingly, ground No.1 of the assessee is rejected." From a reading of the facts above and the Tribunal's order and other material on record, it comes to the fore t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommodity having a distinct name, character and use and therefore, the test to determine whether 'manufacture' has taken place is satisfied. Without undergoing the process of compression natural gas in its original form cannot be used as fuel for the automobile industry. It is only upon undergoing the process of compression, it is converted into compressed natural gas which is a commodity, to be used as a fuel for the automobile industry. The Tribunal has failed to discuss this aspect of the matter completely and has ignored the material placed by the appellant on record whereby it has sought to show that the entire process by which natural gas is compressed and having been compressed acquires a new and changed name of compressed n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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