1997 (5) TMI 211 - AT - Central Excise

Summary

Issues:
Excisability and dutiability of steel fabricated items for erecting structurals.

Detailed Analysis:

1. Background:
The appeal concerns M/s. Orissa Construction Corpn. Ltd., engaged by M/s. National Aluminium Co. (NALCO) for fabricating and erecting structural steel work. The issue revolves around whether the fabricated steel items are excisable and dutiable under Central Excise Law.

2. Contentions of the Appellant:
The appellant argued that the fabrication work was done in NALCO's licensed factory premises, and the fabricated items were immovable structural work, not new goods. They cited various precedents to support their stance that fabrication of steel structurals does not amount to manufacturing excisable goods.

3. Respondent's Position:
The respondent contended that the appellant was the manufacturer of marketable goods like beams, columns, staircases, and platforms, which were dutiable. They supported the duty demand made by the adjudicating authority.

4. Tribunal's Analysis:
The Tribunal examined the nature of the fabrication work done by the appellant within NALCO's premises. It noted that the fabricated items were part of immovable structurals, lacked independent marketable identity, and were specific to NALCO's requirements.

5. Legal Precedents:
The Tribunal referenced past decisions, such as S.A.E. (India) Ltd. v. CCE and CCE v. Dodsal Pvt. Ltd., where it was held that certain processes like cutting, punching, and galvanizing steel items did not constitute manufacturing for excise purposes.

6. Marketability and Dutiability:
Citing Indian Cable Co. Ltd. v. CCE, the Tribunal emphasized that marketability is crucial for determining dutiability. It found that the fabricated items did not assume a shape usable by general customers and were intermediate processes.

7. Observations and Decision:
The adjudicating authority's visit to NALCO's premises confirmed the fabrication processes undertaken by the appellant. However, the Tribunal disagreed with the authority's view, considering the processes as not amounting to manufacturing excisable goods.

8. Final Ruling:
After evaluating all facts and legal precedents, the Tribunal set aside the adjudicating authority's decision, allowing the appeal in favor of the appellant, M/s. Orissa Construction Corpn. Ltd.

This detailed analysis highlights the key arguments, legal principles, precedents, and the Tribunal's rationale leading to the final decision in the appeal regarding the excisability and dutiability of steel fabricated items for erecting structurals.