FORDER TECHNIK INDIA PVT. LTD. Vs. C.C.E.
LAWS(CE)-2015-2-8
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on February 16,2015

Appellant
VERSUS
Respondents

JUDGEMENT

D.N. Panda, Member (J) - (1.)LEARNED consultant explains that it was required for the appellant to install and erect heavy storage racks in the premises of various companies for storage of industrial engineering goods. Appellant had no manufacturing facility for which it had job worked relevant goods in piecemeal and brought the same from job workers to the site for installation and erection at the premises of its clients. Contractual obligation of appellant was not merely to make the rack but to ensure erection thereof at site. The goods in piecemeal does not give rise to the storage rack as is exhibited by the photograph submitted to the authority below. Only upon assembly of different components through welding process, the racks are embedded to earth and becomes heavy storage rack. Such racks are not easily detachable. In the event of dismantling, the system shall be damaged.
(2.)APPELLANT submits that all the above features involved in the activities carried out by the appellant bring out that the appellant was not manufacturer since the goods only upon being embedded to earth comes into existence as structure. The goods so attached to earth cease to become movable goods. Accordingly, there shall be no levy of excise duty on the racks in the circumstances of the case since ultimate object is to erect and install the goods manufactured and embedded to earth and its case is supported by the decision of Tribunal in the case of Thyssenkrupp Industries India Pvt. Ltd. v. CCE, Visakhapatnam : 2005 (190) ELT 337 (Tri. Bang.). Therefore, the appeal may be allowed.
Revenue's submission is that appellant was manufacturer and manufactured the goods in question indirectly through job worker, while he was principal manufacturer all along. Therefore, it cannot claim any immunity from liability. The goods as brought for erection were cleared as independent and movable goods for which those are liable to duty upon clearance. Revenue supports the entire adjudication.

(3.)HEARD both sides and perused the records.
;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.