2002 (8) TMI 107 - SC - Central Excise

Summary

Issues: Whether "spray paint booth" is excisable goods chargeable to excise duty under Entry 8424.00 of the Schedule to the Central Excise Tariff Act, 1985.

Summary:
The Supreme Court considered the appeal by the Commissioner of Central Excise, Mumbai challenging the judgment of the Customs, Excise and Gold (Control) Appellate Tribunal, West Regional Bench at Mumbai. The main issue was whether a "spray paint booth" qualifies as excisable goods under Entry 8424.00 of the Act. The Court emphasized that for an article to attract excise duty, it must possess the attributes of mobility and marketability or be specifically listed in the Act. The Tribunal found that the "spray paint booth" was immovable property as its outside portions were embedded in the earth and could not be dismantled without damage, rendering it non-mobile. Although marketable under that name, it was not listed in the Schedule under that specific name. Citing a previous judgment, the Court upheld the Tribunal's decision, stating that the "spray paint booth" did not meet the criteria for excisable goods. The Central Board of Excise & Customs had issued guidelines supporting this interpretation, further strengthening the decision to dismiss the appeals. Consequently, the appeals were dismissed with no costs awarded.