TaxTMI 
TaxTMI 
TaxTMI 
2014 (7) TMI 275
X X X X Extracts X X X X
X X X X Extracts X X X X
....its), regulators, injectors, filters, etc. on payment of appropriate customs duty and CNG cylinders, High Pressures pipes and gauge and hoses, etc. are procured from domestic manufacturers. For making a CNG kit, the appellant put the various imported and indigenously procured items in a box called CNG Kit and they also provide a diagram/blue print manual showing as to how the CNG kit is to be fitted in a particular vehicle. It is these CNG kits, which are sold by the appellant to individual customers are and also installed in the vehicles. In some cases, the appellant sell the packaged CNG kits to independent traders as well. The department was of the view that this activity of the appellant - making CNG kit out of different components eith....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpany. Against this order of the Commissioner, this appeal has been filed along with stay application. 2. Though the matter is today listed for hearing of the stay application, after hearing the same for some time, the bench was of the view that the matter can be heard for final disposal as only a short issue is involved. In view of this, with the consent of both the sides, the matter was heard for final disposal. 3. Shri B.L. Narsimhan, Advocate, the ld. Counsel for the appellant, pleaded that the appellant either imported or domestically procured various components, which are put into a box along with installation manual, that the imported components have suffered customs duty and the domestically procured items have suffered central ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing links in a kit does not bring into existence any new product and is not manufacture, that this judgement was affirmed by the Apex court vide judgement reported in 2001 (130) ELT A-231 (SC), that the ratio of the above judgments of the Tribunal and the Apex Court are squarely applicable to the facts of this case more so, when the appellant are simply procuring the various items of the CNG conversion kits from different sources and packing them in a box for sale and while they are paying sales tax on the sale of kits in case of installation into the customer's vehicles, they are paying service tax on the installation charges. He, therefore, pleaded that the impugned order is not sustainable. 4. Shri Pramod Kumar, ld. Departmental Rep....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... CNG kit, sales tax is paid on the value of the CNG kit and wherever the appellant installed the kit in a customer's vehicle, service tax is paid on the installation charges. The point of dispute is as to whether the very act of collecting various components and fitting them into a box for installation in the CNG would amount to manufacture. We find that in respect of similar activity the act of making cable jointing kit, Hon'ble High Court of Andhra Pradesh in case of XI Telecom Ltd. (supra) has held that making cable jointing kit does not amount to manufacture. Similarly the Tribunal in the case of Dalmia Industries Ltd Vs. CCE (supra) held that collecting bottles, feeder nipples and bottle lids from diverse sources in the market,....