2005 (9) TMI 453 - AT - Central Excise

Summary

Issues:
Determining whether 'industrial fans' arising during fabrication and erection of a humidification plant are excisable goods or immovable property.

Analysis:
The main issue in this case was whether the 'industrial fans' created during the fabrication and erection of a humidification plant were excisable goods or immovable property. The original authority considered the fans excisable and demanded duty, while the first appellate authority deemed them immovable and non-excisable, leading to the present appeals.

During the hearing, the appellant relied on a Tribunal decision that was subsequently overruled by the Apex Court. The respondent's counsel referred to a circular by the Board and another Tribunal decision to support the argument that the industrial fan should be considered immovable and hence non-excisable.

The process of creating the 'industrial fan' was described in the impugned order, highlighting the permanent fixation of the fan's casing to the wall through welding with RCC reinforced rods. The lower appellate authority correctly concluded that the fan became immovable due to this fixation process, making it a part of the wall. The CBEC's order under Section 37B of the Central Excise Act provided norms for determining the excisability of structures like industrial fans, which supported the view that the fans in this case were not excisable.

Ultimately, the Tribunal upheld the lower appellate authority's decision, emphasizing the permanent nature of the fan's attachment to the wall and the guidelines provided by the CBEC. The Tribunal also noted that the previous Tribunal decision relied on by the appellant had been overruled by the Apex Court. As a result, the Revenue's appeals were dismissed.

This judgment clarifies the classification of 'industrial fans' in the context of excisability, emphasizing the importance of the permanent attachment of such items to immovable structures in determining their excisability status.