2005 (12) TMI 425 - AT - Central Excise

Summary

Issues:
Excise duty demand on Coal Handling Plant erected on job contract basis at Ropar for Punjab State Electricity Board under 84.28 of Central Excise Tariff.

Analysis:

The appeal before the Appellate Tribunal CESTAT, New Delhi was against an excise duty demand exceeding Rs. 1.8 crores and a penalty of Rs. 30 lakhs imposed on the appellant for a Coal Handling Plant erected on a job contract basis at Ropar for the Punjab State Electricity Board. The demand was based on the classification of the Coal Handling Plant as excisable under 84.28 of the Central Excise Tariff.

The appellant's counsel argued that the issue of duty liability concerning Coal Handling Plants erected had been previously disputed between the appellant and the revenue in other job contracts. Reference was made to a judgment of the Apex Court in a related case involving the same appellant and the Punjab State Electricity Board. The Apex Court's decision indicated that the issue had been settled without delving into the legal propositions, leading to the dismissal of the appeals. Additionally, the counsel highlighted a judgment of the Hon'ble Gujarat High Court in the appellant's case, where it was held that a Coal Handling Plant, comprising civil structures and conveyor belts spread over a large area, should not be considered excisable goods as it constituted immovable property.

Upon reviewing the records and hearing the learned SDR, the Tribunal found that the present Coal Handling Plant was assembled and erected in a similar manner to those addressed in the earlier judgments of the Supreme Court and the High Court. Consequently, the Tribunal concluded that the current case fell within the scope of the favorable decisions of the higher courts. As a result, the Tribunal allowed the appeal, set aside the impugned order, and granted consequential relief, if applicable, to the appellant.

In conclusion, the Tribunal's decision was based on the consistency of the facts of the present case with the judgments of the Supreme Court and the High Court regarding the classification of Coal Handling Plants as excisable goods, ultimately leading to the allowance of the appeal and relief for the appellant.