1997 (6) TMI 202 - AT - Central Excise

Summary

Issues:
1. Whether the fabrication work undertaken by the appellant constitutes manufacturing of marketable goods subject to excise duty.
2. Classification of the fabricated parts under the Central Excise Tariff Act, 1985.

Analysis:
1. The case involves the appellants, manufacturers of Laminates, who undertook fabrication work of M.S. Steel racks without proper declaration or Central Excise license. The Asstt. Collector imposed duty, penalty, and gave an option to redeem confiscated steel racks. In appeal, the ld. Collector (Appeals) held that the fabricated parts were first made into steel furniture parts before being built into furniture, falling under Heading 94.03. The appellants cited precedents where assembly of parts for own use was not considered manufacturing. They argued that the fabricated items were not marketable excisable goods but an addition to an immovable storage facility. The Tribunal considered the marketability aspect and found that the goods were not generally marketed, concluding that they were not 'goods' subject to duty. The impugned order was set aside, and the appeal was allowed.

2. The respondent Commissioner argued that the fabricated parts were identifiable and classifiable under Tariff Item 94.03. The ld. SDR contended that the fabrication involved identifiable parts of Steel Furniture, justifying classification under the Central Excise Tariff Act, 1985. However, the Tribunal found that since the fabricated goods were not generally marketed, not sold by the appellant, and not considered 'goods,' there was no question of classification or levy of duty. Consequently, the appeal was allowed, and any consequential relief was deemed admissible to the appellants in accordance with the law.