2011 (4) TMI 279 - SC - Central Excise

circular of the Central Board of Excise and Customs which is dated 15-1-2002 - in the case of Commissioner of C.Ex., Indore v. Virdi Brothers - (2006 -TMI - 874 - SUPREME COURT OF INDIA) relied upon aforesaid circular issued by the Central Board as also various other decisions of this court. This Court held that the appeal filed by the Commissioner Excise, had no merit - Besides, the air-conditioning plant was an immovable article whereas Asphalt drum/Hot mix plant is a movable article - Appeal is dismissed

Summary

Issues:
Appeal against CEGAT judgment on excisability of air-conditioning plant, reliance on circular by Central Board of Excise and Customs, comparison with previous judgments on similar goods.

Analysis:
1. The appeals were filed against a CEGAT judgment dated 16-7-2002, where reliance was placed on the decision in the case of M/s. Sayaji Hotels Ltd. v. C.C.E., Indore and a circular by the Central Board of Excise and Customs dated 15-1-2002. The circular stated that refrigeration/air-conditioning plants are systems comprising various components and cannot be considered excisable goods as a whole. The Tribunal allowed the appeals of the appellant based on this reasoning.

2. In a separate judgment in the case of Commissioner of C.Ex., Indore v. Virdi Brothers, this Court relied on the same circular issued by the Central Board and various other decisions. It was held that the appeal filed by the Commissioner Excise had no merit. The case of M/s. Sayaji Hotels Ltd. was also part of the batch matter heard with the Virdi Brothers case.

3. The present appeals also concern air-conditioning plants, similar to the Virdi Brothers case. The appellant's counsel referred to the decision in Commissioner of Central Excise, Ahmedabad v. Solid & Correct Engineering Works, where the setting up of Asphalt Drum/Hot Mix plant was considered. This Court found the two cases distinguishable as the goods and their nature were different. The Virdi Brothers judgment applied to the current case, as it had already decided the relevant issue.

4. Consequently, following the decision in Virdi Brothers, the appeals were dismissed, with each party bearing their own costs. The judgment reaffirmed the applicability of the Virdi Brothers case to the excisability of air-conditioning plants, based on the circular by the Central Board of Excise and Customs.