2002 (12) TMI 385 - AT - Central Excise

Summary

Issues: Availability of exemption under entry 7 of notification 59/90 for precast water drain boxes manufactured away from the construction site.

Analysis:
1. The primary issue in this case was the availability of the exemption under entry 7 of notification 59/90 for precast water drain boxes manufactured by the appellant, V.M. Jog Engineering Limited, away from the actual construction site of a flyover.

2. The facts were undisputed that the drain boxes were cast in concrete at a site half a kilometer away from the highway where they were to be used as part of a storm water drain underneath a flyover at Kalanagar.

3. The Commissioner had rejected the appellant's claim for exemption, holding the goods liable to duty and imposing penalties. The appellant relied on previous decisions and a circular by the Board to support their claim for exemption.

4. The Tribunal referred to previous decisions where the definition of "site" in the notification was interpreted broadly to include premises specifically mentioned in the construction contract, even if located at a distance from the actual construction site.

5. The Tribunal acknowledged the practical challenges in civil construction where goods cannot always be manufactured precisely at the site of their use, such as beams for bridges or girders for buildings. In this case, the goods in question were essential components of the flyover, which could not practically be manufactured at the exact spot due to heavy traffic and logistical constraints.

6. By adopting a pragmatic approach, the Tribunal concluded that the goods, though manufactured half a kilometer away, were effectively constructed at the site of the flyover's construction. Therefore, the Tribunal held that the appellant was entitled to the benefit of the exemption under the notification.

7. Consequently, the appeals were allowed, and the impugned order was set aside, granting the appellant consequential relief in accordance with the law.