Per V.K. Agrawal:

The issue involved in this appeal filed by M/s. Mineral Oil Corporation is whether the process of reclamation of transformer oil from used transformer oil amounts to manufacture so as to attract levy of duty of excise.

2. Briefly stated the facts are that the appellants manufacture virgin transformer oil. They are also engaged in the reclamation of duty paid used transformer oil on their own account out of used transformer oil purchased from the market and also on job work basis out of used transformer oil received from U.P. State Electricity Board (UPSEB). The Commissioner, Central Excise, Kanpur, under the impugned order dated 24.12.96, confirmed the demand of Central Excise duty amounting to Rs. 5,30,246.10 on the reclaimed transformer oil cleared during the period from 24.3.96 to 30.6.96 after classifying the reclaimed transformer oil sub-heading 2710.90 of the Schedule to the Central Excise Tariff Act, holding that manufacture is a process of converting some material into a form adopted for uses to which in its original form it could not be so used; that the appellants removes the impurities to enhance the insulating quantities of the transformer oil; that