2001 (8) TMI 751 - AT - Central Excise

Summary

Issues:
1. Appeal against order of Commissioner (Appeals) regarding recovery of interest under Section 11A.
2. Classification of Drop Hammer Structure for duty payment.
3. Inclusion of value of bought-out items in assessable value.

Issue 1:
The appellant, M/s. Associated Plates & Vessels (P) Ltd., challenged the order of the Commissioner (Appeals) regarding the recovery of interest under Section 11A. The Deputy Commissioner confirmed a demand of Rs. 89,712 and imposed a penalty of Rs. 9,000 along with interest at 20%. The Commissioner (Appeals) modified the order by dropping the recovery of interest but upheld the rest of the order-in-original. The appellant contested this decision before the Appellate Tribunal CEGAT, Kolkata.

Issue 2:
The case revolved around the classification of the Drop Hammer Structure for duty payment. The Department contended that duty was payable on the structure, alleging it to be a distinct commodity. The appellant argued that the structure was embedded in the ground, making it non-marketable and not excisable. The technical expert's affidavit and explanation emphasized the structure's permanent embedding, making it impossible to be removed without significant damage. Citing relevant case law, including the decision in Tata Robins Fraser Ltd. v. C.C.E., the appellant highlighted that goods must be removable to a new place to be considered as such. The Tribunal agreed with the appellant, ruling that the Drop Hammer Structure, being embedded in earth, was not goods and, therefore, not liable for duty.

Issue 3:
Regarding the inclusion of the value of bought-out items in the assessable value of the Drop Hammer Structure, the appellant argued that since these items were bought-out and duty paid, their value should not be added to calculate the assessable value. The Department, on the other hand, contended that the bought-out items' value should be included in determining the assessable value, considering the creation of a new commodity. The Tribunal, after considering the submissions and evidence, sided with the appellant, emphasizing that the structure's embedded nature rendered it non-marketable and not subject to duty. The appeal was allowed, granting any consequential relief to the appellants as per the law.

This detailed analysis of the judgment highlights the key issues addressed by the Appellate Tribunal CEGAT, Kolkata, in the case of M/s. Associated Plates & Vessels (P) Ltd. against the order of the Commissioner (Appeals) regarding the recovery of interest, classification of the Drop Hammer Structure, and the inclusion of bought-out items' value in the assessable value.