2004 (11) TMI 166 - AT - Central Excise

Summary

Issues:
1. Duty demand on Websol panels and crushed stones.
2. Applicability of Notification No. 59/90 for exemption.
3. Marketability and excisability of Websol panels.

Analysis:
1. The case involved a dispute over duty demand on Websol panels and crushed stones used in construction projects. The respondents, engaged in construction work, imported Websol panels approved by the Government for specific projects. The duty demand was raised for the period between September 1990 and February 1994. The initial duty demand was confirmed but later set aside partially by the Tribunal, leading to the current appeal by the Revenue.

2. The main contention was the applicability of Notification No. 59/90 for exemption from excise duty to goods manufactured at the construction site. The Revenue challenged the dropping of duty demand on Websol panels, arguing that the benefit of the notification should not apply as the panels were not manufactured at the site. However, the Tribunal upheld the benefit, citing that the panels were indeed manufactured at the site specified in the contract, as clarified by a government notification.

3. The issue of marketability and excisability of the Websol panels was also crucial. The Tribunal found that the panels, made from cement, steel, and stone aggregates, were specific to the construction site and had no marketability beyond that. As they were custom-made for the project and could not be used elsewhere, they were deemed non-excisable. The findings of the adjudicating authority on this matter were upheld, leading to the dismissal of the Revenue's appeal.

In conclusion, the Tribunal upheld the decision regarding the duty demand on Websol panels, citing the applicability of the exemption notification and the non-marketability of the panels. The appeal of the Revenue was dismissed, and the impugned order was upheld.