Transformer coil conversion for repair held not to be manufacture, so no central excise duty was payable.

Converting aluminium and copper wires and strips into transformer coils in the assessee's own workshop for repairing electric transformers was treated as not amounting to manufacture. The Tribunal followed its earlier decisions in the assessee's own case and held that the captively used coils did not arise from a process creating excisable goods liable to central excise duty. On that reasoning, no duty was payable on the transformer coils, and the assessee succeeded.

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Issues: Whether the conversion of aluminium and copper wires and strips into transformer coils for use in the repair of electric transformers within the assessee's own workshop amounted to manufacture so as to attract central excise duty.

Analysis: The Tribunal noted that the issue had already been settled in the assessee's own case and in earlier decisions holding that the process of converting aluminium or copper winding materials into transformer coils did not amount to manufacture. Applying the same reasoning, the Tribunal treated the captively used coils as not resulting from a manufacturing process that created excisable goods liable to duty.

Conclusion: The process did not amount to manufacture and no duty was payable; the appeal was decided in favour of the assessee.

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