The upgrading of old and used computer systems would not amount to manufacture, in so far as the upgradation does not bring into existence goods with a distinct new name, character and use

Upgrading Used Computers Not Manufacturing Under Central Excise Act if No New Name, Character, or Use Created.

The circular clarifies that upgrading old and used computer systems does not constitute manufacturing under the Central Excise Act, 1944, as long as the upgrade does not result in goods with a new name, character, and use. Enhancements such as increasing storage or processing capacity by adding components like hard disks or changing processors do not create new goods subject to additional duty. The components involved in the upgrade have already been taxed, and the location of the upgrade, whether at a customer's premises or elsewhere, does not affect this determination.