1978 (11) TMI 75 - HC - Central Excise

Summary

Issues involved: Determination of whether the assembly of cooling coils and condensers by cold storage owners constitutes manufacture under Item No. 29A (3) of the Central Excises and Salt Act, 1944, and whether such assembly is liable to duty.

Summary:
1. The group of 19 writ petitions filed by cold storage owners raised similar facts and legal points regarding the assembly of cooling coils and condensers in their plants.

2. The petitioners were served a notice for duty payment on the basis that they had manufactured parts covered under Item No. 29A (3) of the Act, namely, condensers and cooling coils.

3. Despite objections and appeals, the authorities held that the assembly of pipes by the petitioners constituted manufacture of cooling coils and condensers, subject to duty under the Act.

4. The Central Government's decision on similar revisions influenced the court not to dismiss the petitions on technical grounds, affirming the liability of the petitioners for duty payment.

5. The lower authorities found that the assembly of pipes by the petitioners indeed constituted manufacture of cooling coils and condensers within the purview of Entry 29A (3) of the Act.

6. The court analyzed the statutory provisions under Entry 29A, emphasizing that duty is leviable only on refrigerating and air-conditioning appliances sold as ready assembled units, excluding items assembled on-site or individual component parts.

7. The Board clarified that complete refrigerating and air-conditioning plants erected on-site are not liable to duty under Entry 29A, as they are not sold as ready assembled units.

8. The court deliberated on whether the assembly of cooling coils and condensers at the factory site falls within the scope of Entry 29A, concluding that such assembly is outside the purview of duty under sub-items (1) and (2).

9. While acknowledging the general levy of excise duty on manufactured goods, the court emphasized that duty under Entry 29A is restricted to assembled units generally offered for sale, excluding parts assembled on-site.

10. Consequently, the court allowed the petitions, quashed the authorities' orders, set aside the demand notices, and awarded costs to the petitioners.