2008 (12) TMI 564 - AT - Central Excise

Summary

Issues:
1. Classification of "Automated Storage & Retrieval System (ASRS)" as goods for excise duty.
2. Determination of whether ASRS constitutes movable or immovable property.
3. Assessment of excise duty on the ASRS and sub-assemblies used in its assembly.

Analysis:
1. The primary issue in this case revolves around the classification of the "Automated Storage & Retrieval System (ASRS)" as goods for excise duty purposes. The Commissioner contended that the ASRS should be treated as goods based on the orders received from different units. The appellant argued that the ASRS is immovable property and not capable of being sold or marketed in its assembled form. The Commissioner imposed duty on the entire value, including erection and commissioning charges, leading to a demand of Rs. 43,61,600/- along with penalties.

2. The second issue pertains to the determination of whether the ASRS should be considered movable or immovable property. The appellant highlighted that the system was erected at the Bhopal unit and could not be sold or received in its assembled state. By referencing purchase orders and legal precedents, the appellant argued that duty should not be levied on what was assembled as immovable property. The Tribunal, after careful consideration, found that the assembled system may not be classified as movable goods, supporting the appellant's contention that it qualifies as immovable property.

3. Lastly, the assessment of excise duty on the ASRS and sub-assemblies used in its assembly was a crucial aspect of the case. The appellant stressed that the sub-assemblies had already suffered duty, and the duty demanded on the entire value, including erection and commissioning charges, was unjustified. The Tribunal acknowledged the duty suffered on the sub-assemblies and granted a waiver of pre-deposit of dues, staying the recovery until the appeal's disposal. This decision was based on the finding that the appellant had made a prima facie case for the waiver of dues as per the impugned order, indicating a favorable outcome for the appellant.

In conclusion, the judgment by the Appellate Tribunal CESTAT, New Delhi, addressed the classification of the ASRS, the property status of the assembled system, and the assessment of excise duty, ultimately ruling in favor of the appellant by granting a waiver of dues and staying the recovery pending appeal disposal.