2004 (1) TMI 261

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....or clearance of the same without payment of duty in terms of the provisions of Rule 16(3) of Central Excise Rules, 2002. 2. The Commissioner vide his impugned order has held that the reconditioning and repairing of the old bearings amounts to manufacture and passed the order with the following directions: "In respect of the goods received in your factory, which are not accompanied by duty paying documents the following procedure have to be followed in terms of Rule 16(3) of the Central Excise Rules, 2002. (i)         The assessee should file an application to the jurisdictional Dy./Asstt. Commissioner of Central Excise through Range Officers mentioning or declaring description of goods, ident....

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....EFINED, RECONDITIONED" and shall pay duty on such goods at the rate applicable on the date of removal and on such value as determined under Section 4 of Central Excise Act, 1944 read with Rule 6 of Central Excise (Determination of Valuation of Excisable Goods) Rules, 2000." 3.  The appellant are aggrieved with the Commissioner's direction to clear the goods on payment of duty by holding the same to be manufactured and hence excisable items. We have heard learned Shri Debi Pal, Senior Advocate appearing for the Revenue. 4. The process undertaken by the appellant for the repairing activity on the old bearings is detailed in the impugned order of the Commissioner as follows: "The assessee submitted the detail description of the p....

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....stries Ltd. v. Collector of Central Excise, Hyderabad [1986 (26) E.L.T. 353 (Tribunal)] it was held that repairing and reconditioning of the old goods by replacement of unserviceable parts does not amount to emergence of a new product. Similarly in the case of East India Transformers & Switch Gears (P) Ltd. v. Collector of Central Excise, 1989 (43) E.L.T. 561 (Tribunal) it was held that change of oil, HT Led Coils and other parts in the old transformers does not amount to emergence of a new transformer and as such the repair of transformer does not amount to manufacture. Appeal against the above decision of the Tribunal was dismissed by the Hon'ble Supreme Court as recorded in Collector v. East India Transformer - 1997 (93) E.L.T. A125. ....