2000 (11) TMI 477 - AT - Central Excise

Summary

Issues:
1. Modification of Stay Order regarding pre-deposit of disputed duty amount.
2. Whether assembly of Diesel Generating Sets amounts to "manufacture".

Analysis:
1. The Tribunal had earlier directed the applicants to deposit 50% of the total duty amount as a pre-condition for hearing the appeal, subject to which the requirement of pre-deposit of the balance amount was waived. The applicants sought modification of this Stay Order to dispense with pre-deposit of the entire duty amount unconditionally. The ld. advocate argued that subsequent developments, including a Tribunal order in the applicants' favor on a similar dispute and a Supreme Court judgment, supported their case for dispensing with pre-deposit. The Revenue contended that the applicants had only been asked to deposit 50% and there was no ground for waiving the pre-deposit of the balance amount. The Tribunal, after considering the arguments and subsequent developments, modified the Stay Order to dispense with the pre-deposit of the entire duty amount during the pendency of the appeals.

2. The main issue in the appeals was whether assembling Diesel Generating Sets on a base frame at the installation site constituted "manufacture". The appellants argued that the sets became immovable property due to the installation process and did not amount to manufacture. The Commissioner rejected this plea, stating that the sets remained movable property even after assembly, as they could be removed and sold elsewhere. The ld. advocate highlighted the facts of the case and referred to a Supreme Court judgment on a similar matter to support the appellants' case. The Tribunal, after a detailed analysis and considering the arguments presented, found that the subsequent developments and the Supreme Court judgment warranted a re-examination of the issue. Based on the latest judgment and exceptional circumstances, the Tribunal concluded that the applicants had made a strong case for dispensing with pre-deposit of the balance duty amount, modifying the Stay Order accordingly.

In conclusion, the Tribunal allowed the Miscellaneous Applications, modifying the Stay Order to dispense with the pre-deposit of the entire duty amount during the pendency of the appeals.