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TMI Blog2008 (1) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue is aggrieved with the Order-in-Appeal No.330/2005 CE dated 30.12.2005 by which the Commissioner (A) has confirmed the Order-in-Original No.1/2004 dated 13.3.2004 passed by the Assistant Commissioner holding that the repair of transformers cannot be held to bring into existence new goods. The Commissioner (A) has followed 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 Vs. 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 good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) E.L.T. A106 (S.C.). The Commissioner, after due consideration, held that no separate coils arise and they are not marketable. The findings recorded in paras 6 to 12 are reproduced herein below: "6. I have carefully gone through all the records of the case, the reply to the Show Cause Notice and the written as well as oral submissions made by the 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 transform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply of similar Coils by M/s. Associated Power Equipment Pvt. Ltd., Bangalore to M/s. NGEF Ltd., Bangalore. 9. I find that the CEGAT in the case of Punjab State Electricity Board Vs. Collector of Central Excise, Chandigarh 1995 (76) E.L.T. 313(Tri.) has held that conversion of copper or aluminium wires into transformer coils, does not amount to 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. A 106 (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 mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f exists independently as a coil. Thus the coil does not exist at any time as a marketable commodity". 10. In the instant case as already discussed supra, the assessee is basically engaged in the activity, which involves winding of the DPC Aluminium strips on Aluminium or wooden bobbins on the winding machines. After winding the coil to the required 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 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely applicable to the facts of the instant case and I am therefore inclined to hold that the impugned goods viz. HV/LV coils captively consumed in the repair of transformers cannot be held to be 'goods' and hence, not leviable to duty. As such, I do not propose to discuss the issue of clubbing of clearances and valuation of HV/LV coils. 12. In view of the 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 22-08-2003 against M/s. Sri 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 wire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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