1996 (8) TMI 234 - AT - Central Excise

Summary

Issues: Duty liability on fabricated columns under central excise law.

The judgment by the Appellate Tribunal CEGAT, New Delhi involved the duty liability on the product 'Columns' fabricated by welding various steel items under central excise law. The appeal was filed by the Associated Cement Companies Ltd. who were engaged in manufacturing cement and had fabricated columns at their cement works for subsequent fixing at the site of a fly ash collecting plant. They paid central excise duty under protest and filed a refund claim which was rejected by the Assistant Collector and the Collector of Central Excise (Appeals), Bombay.

The respondents argued that the columns were marketable moveable goods fabricated by welding various steel items and transported to the site for installation. The Tribunal noted that the columns were fabricated by welding channels, beams, and plates at the cement works and were to be transported to a different site for erection. The Collector of Central Excise (Appeals) had determined that the columns were separate commodities from the raw materials and were manufactured items not fixed to the ground at the clearance stage.

The appellants cited precedents but failed to establish their applicability to their case. They argued that the columns were not ordinarily bought and sold in the market, but the Tribunal held that for excisability, goods need not be marketed, and if capable of marketing, they fall under excise law. The appellants contended that the columns were fabricated for permanent fastening to the earth at the site, but the Tribunal agreed with the Collector of Central Excise (Appeals) that the columns were moveable goods until fixed at the site, thus rejecting the appeal.

In conclusion, the Appellate Tribunal upheld the decision of the Collector of Central Excise (Appeals), Bombay, stating that the columns were marketable goods and moveable at the clearance stage, finding no grounds to interfere with the earlier order. Therefore, the appeal regarding the duty liability on the fabricated columns under central excise law was rejected.