2004 (12) TMI 141

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....er per : C.N.B. Nair, Member (T)]. - The issue raised is whether conversion of old Diesel 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....

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....3. During the hearing of the case, learned Counsel for the appellants has pointed out that 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 ....

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....1999 (110) E.L.T. 833 (T) (x)        C.C.E. v. Molins of India Ltd. - 1997 (95) E.L.T. 89 (T) (xi)      Reliance Storage Energy & Systems (P) Ltd. v. C.C.E. - 2001 (131) E.L.T. 210 (T) (xii)     Bengal Cylinder & Containers Pvt. Ltd. v C.C.E. - 2003 (153) E.L.T. 170 (T) (xiii)    C.C.E. v. Us....

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.... of over Rs. 3,00,000/-. In the case of DTC buses, such engines remain installed on the buses. The appellant has made some modification in the already existing engines so as to make them capable of accepting another fuel. The cost of such modification is very small, less than 10% of the cost of manufacturing a new engine. Therefore, the learned Counsel for the appellants is right in his contention....