2017 (1) TMI 1537 - AT - Central Excise

Erection and assembling of towers at specified sites - Held that - in the Central Excise Act, 1944, the leviability of the excise duty is different for the towers which are assembled in the factory than those erected at the site and come out as an immovable structure. From the impugned order, it appears that the authorities below have not examined the issues properly in a right perspective - matter remanded to the adjudicating authority for de novo adjudication - appeal allowed by way of remand.

Summary

Issues Involved:
Identification of duty payment on value of nuts, bolts, and washers in the manufacture of Galvanized Transmission Line Tower under Central Excise Tariff Act, 1985.

Analysis:

1. Duty Payment on Value of Nuts, Bolts, and Washers:
The appeals were filed against the Order-in-Originals passed by the Commissioner of Central Excise, Jaipur, regarding the duty payment on the value of nuts, bolts, and washers in the manufacture of Galvanized Transmission Line Tower. The assessee-appellants paid duty on the value of towers, including the value of procured nuts, bolts, and washers. The components like angles, plates, channels, flats, bars, round, and rods were manufactured and used along with the supplied items for tower erection at the site. The dispute revolved around whether the value of directly purchased nuts, bolts, and washers should be included in the value of tower materials. The Department demanded duty based on this inclusion. The contention was that nuts, bolts, and washers were received at the site directly, not assembled in the factory. The Commissioner mentioned a contradiction in the facts regarding whether the towers were erected in the factory or at the site, leading to the need for re-examination. The Central Excise Act differentiates duty levies for towers assembled in the factory versus those erected at the site as immovable structures. The impugned order was set aside, and the matter was remanded for fresh adjudication, ensuring the assessee-appellants have a reasonable opportunity to present their case with the liberty to submit additional documents if required.

2. Examination of Issues and Remand:
The Tribunal found that the authorities below did not properly examine the issues in the right perspective. It was noted that the fabricated components were assembled using nuts, bolts, washers, etc., for the completion of the final product, the Transmission Line Tower. The contention that the towers were erected at the factory or at the site was a crucial point of contradiction. The Tribunal highlighted the importance of distinguishing between towers assembled in the factory and those erected at the site as immovable structures for excise duty purposes. The matter was remanded to the adjudicating authority for a fresh review in light of the observations made, ensuring a fair opportunity for the assessee-appellants to present their case and submit any additional documents as required by law.

This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Tribunal's decision to remand the matter for fresh adjudication, emphasizing the importance of proper examination and clarification on the assembly location of the towers for excise duty determination.