1999 (2) TMI 391 - AT - Central Excise

Summary

Issues:
Classification of tubular structures and parts under Sub-heading No. 7308.90.
Levying duty of excise on pressed steel tank.

Analysis:
1. The appeals by the manufacturer and the Department stem from the same impugned order-in-appeal concerning the classification of tubular structures and parts. The appellant challenges the order classifying these structures under Sub-heading No. 7308.90. The appellant argues that the impugned order is unjust as it has been set aside in a similar case involving M/s. Expo Steels. The Tribunal ruled that no excisable goods were created, leading to no duty imposition on steel structures and their parts. Consequently, the appellant's appeal is allowed based on the precedent set in the M/s. Expo Steels case.

2. The Department's appeal revolves around the duty of excise on a pressed steel tank. The dispute arises from conflicting interpretations of the manufacturing process of the tank. The Collector (Appeals) stated that the tank becomes excisable only when fixed to the earth, while the manufacturer contends that the tank is assembled on-site, becoming immovable property upon completion. With no clarity on whether the tank is created first and then attached to the earth or simultaneously during attachment, the Tribunal remands the issue for a fresh decision by the original adjudicating authority. The decision will consider the manufacturing process of the pressed steel tank and recent legal precedents, including those set by the Supreme Court.

3. Given the successful appeal of the manufacturer in the classification matter and the remand of the Department's appeal on the pressed steel tank issue, the Tribunal allows the manufacturer's appeal with consequential relief. Simultaneously, the Department's appeal is remanded for further consideration, ensuring a comprehensive review of the manufacturing process and legal principles governing the levying of excise duty on pressed steel tanks.