2004 (5) TMI 215 - AT - Central Excise

Summary

Issues: Duty demand on pre-stressed concrete girders, imposition of penalties on manufacturer and Deputy Managing Director.

In the present case, the duty demand of Rs. 55,91,471/- on pre-stressed concrete girders supplied by M/s. Asia Foundations and Constructions Limited to M/s. Konkan Railway Corporation Limited was challenged. The adjudicating authority had imposed penalties equal to the duty amount on the manufacturer and a penalty of Rs. 25 lakhs on its Deputy Managing Director. Upon review, the Tribunal noted that in a previous case, it was held that the girders in question were not considered goods under the Central Excise Act, 1944. Additionally, a precedent was cited where cast beams/girders were considered goods liable to duty but entitled to exemption under a specific notification. Consequently, the Tribunal concluded that regardless of whether the items were considered goods or covered by an exemption notification, the duty liability confirmation was not sustainable. As a result, the duty demand and penalties imposed were set aside, and the appeals were allowed, with a clarification that the decision was limited to the facts of the present case.