2004 (12) TMI 176 - AT - Central Excise

Summary

Issues:
Appeal against confirmation of duties and penalties by Commissioner of Central Excise for clearing items without payment of duty under Chapter sub-heading 8402.10 of the Schedule to the CET Act, 1985. Contention that items in question are not excisable goods but immovable property assembled on the spot.

Analysis:
The appeals arose from a common order passed by the Commissioner of Central Excise confirming duties and penalties on the appellants for clearing goods without payment of duty under Chapter sub-heading 8402.10 of the CET Act, 1985. The appellants argued that the items in question were not goods but assembled on the spot, embedded, and grouted to the earth, making them immovable property and not excisable goods. They relied on a Tribunal judgment in a similar case. The Tribunal examined the issue in light of facts and a Supreme Court judgment and found that the items were immovable property, not goods, as they were incapable of being moved and had not become goods. The duty demand was deemed unsustainable, penalties were not applicable, and the impugned order was set aside, allowing the appeal with consequential relief.

The Tribunal considered the entire issue, including the nature of the items in question and their immovability, in line with a previous judgment and the legal principles governing the definition of goods. It was established that the items, being immovable property, did not qualify as goods under the law, and the duty demand was unsustainable. Additionally, since the items were imported after payment of customs duty, their mere erection did not amount to manufacture, further supporting the decision to set aside the duty demand. The Tribunal's ruling highlighted that penalties could not be upheld when the duty demand was found to be unsustainable, providing a comprehensive legal basis for allowing the appeal.

In conclusion, the Tribunal, following the precedent and legal principles, set aside the impugned order and allowed the appeal in favor of the appellants. The decision was based on the immovable nature of the items in question, their import after payment of customs duty, and the inapplicability of penalties in such circumstances. By aligning with the Tribunal's earlier ruling and the legal framework, the judgment provided clarity on the classification of goods and immovable property, ensuring a fair and just outcome for the appellants in the case.