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TMI Blog2004 (12) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... el Engine into CNG Engine involves manufacture which attracts central excise duty. 2. The facts of the case are that diesel run buses of Delhi were found to be highly polluting. In order to reduce pollution, these engines were converted into CNG engines. Some of these engines were already in use from 1992 and the conversion was carried out in 2001-2002. 2. The contention of the appellants is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is well settled that alteration/modification of an already existing manufactured product would not amount to manufacture. Reliance in this connection has been placed on the following judgements : (i) U.O.I. v. Delhi Cloth and General Mills Co. Ltd. - 1977 (1) E.L.T. (J 199) (S.C.) (ii) Shriram Refrigeration Industries v. C.C.E. - 1986 (26) E.L.T. 353 (iii) Lathia Indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) C.C.E. v. Lipi Data Systems Ltd. - 2003 (156) E.L.T. 968 (xv) Glass Equipment (India) Ltd. v. C.C.E. - 2003 (157) E.L.T. 411 (T) = 2003 (59) RLT 511. 4. We have heard the learned SDR. It is his submission that after conversion, the engines get a new identity - CNG engine as against the diesel engine. He has submitted that it is well settled that a process which involved the bringing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing levy of excise duty. 6. In view of what is stated above, we hold that no manufacture of new goods is involved in the present case and the activity of conversion did not amount to manufacture. In this view of the matter, the demand for central excise duty is not sustainable. In the absence of duty, penalty is also not sustainable. In the result, the appeals are allowed after setting aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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