2001 (10) TMI 338 - AT - Central Excise

Summary

Issues:
1. Whether the electronic Weigh Bridge is chargeable to Central Excise duty.

Analysis:
The appeal filed by M/s. Ash Bee System (P) Ltd. raised the issue of whether the electronic Weigh Bridge is subject to Central Excise duty. The appellant's advocate argued that the weigh bridge is an immovable structure, with the concrete foundation being an integral part essential for its functioning. Referring to legal precedents, the advocate contended that the weigh bridge cannot be dismantled and sold as it is a complete system. The Department, represented by the SDR, argued that the assembly of the weigh bridge results in a new product subject to duty. They emphasized that the weigh bridge components embedded in the concrete foundation are for functionality, not immovability. The advocate countered by highlighting the distinction between the weigh bridge and standard weighing machines.

The Tribunal considered the submissions in light of legal principles. Citing previous judgments, the Tribunal emphasized that for an article to be considered "goods" under excise law, it must be capable of being bought and sold in the market. The Tribunal noted that the aspect of marketability is crucial, as highlighted in various legal precedents. The Tribunal also observed that the weigh bridge assembly process involves embedding components into the structure, raising doubts about its marketability as a separate entity. The Tribunal referred to the Triveni Engineering case, emphasizing the test of marketability where goods must be separable and sellable as distinct items. Applying this test, the Tribunal concluded that the electronic weigh bridge cannot be considered "goods" for excise duty purposes, as it cannot be separated and sold independently. Consequently, the Tribunal set aside the impugned order and allowed the appeal filed by M/s. Ash Bee System (P) Ltd.