2009 (3) TMI 364 - AT - Central Excise

Excisability of the ducts which came into existence, during the installation of heat ventilators and air-conditioning systems. - From the facts of the case, it is very clear that the ducts come into existence only at the site. The Commissioner (Appeals) has rightly held that the said goods cannot pass the test of marketability. Hence, they are not excisable. In these circumstances, we do not find any infirmity in the impugned order, therefore, Revenue s appeal is rejected.

Summary

The Appellate Tribunal CESTAT, Bangalore, in the case of Revenue vs. Commissioner of Central Excise (Appeals-II), Bangalore, had to decide on the excisability of ducts created during the installation of heat ventilators and air-conditioning systems. The Commissioner (Appeals) classified the ducts as non-excisable, as they were created on-site and were not considered marketable goods. The Revenue disagreed, arguing that the ducts were excisable goods as they were manufactured from G.I. sheets and were capable of being sold. The Revenue cited a Board's Circular to support their position. However, the Tribunal upheld the Commissioner's decision, stating that the ducts did not pass the test of marketability and were therefore not excisable. The appeal by Revenue was rejected. The judgement was delivered by S/Shri T.K. Jayaraman and M.V. Ravindran
. The case citation is 2009 (3) TMI 364 - CESTAT, BANGALORE. The summary provides a detailed analysis of the issues involved and the final judgement.