2005 (10) TMI 323 - AT - Central Excise

Summary

Issues:
Excisability of dragline machines and eligibility for exemption under Notification No. 182/87.

Analysis:
The appellants, engineering contractors, were involved in erecting and commissioning dragline machines at coal mines without following Central Excise procedures or paying the leviable duty. The Central Excise Collectorate issued Show Cause Notices for duty recovery and penal action based on investigations revealing duty liability. The Commissioner adjudicated that the dragline machines were manufactured goods, not eligible for exemption under Notification No. 182/87, as they were assembled in an open yard at the mine site, not in a workshop. The Commissioner also ordered confiscation of the machines with an option for redemption on payment of fines. The appeal challenged these findings.

Court's Decision:
No representation was made by the appellants, but the Tribunal considered the records and upheld the Commissioner's findings. The Tribunal noted that the components were assembled on-site, resulting in a new product subject to excise duty. The benefit of exemption was rightly denied as the machines were not produced in a workshop but in an open area. The argument that the site constituted a workshop was rejected. Consequently, the Tribunal affirmed that the dragline machines were excisable goods and not exempt under Notification No. 182/87.

Conclusion:
The Tribunal upheld the Commissioner's decisions on excisability and exemption eligibility, dismissing the appeals. Despite a previous order setting aside confiscation, the issues of manufacture and exemption were independently considered and upheld. The judgment affirms that the dragline machines were subject to excise duty and not exempt under the specified notification.