Definition and scope of the term 'Goods' for the purpose of charging duty under Central Excise and Salt Act, 1944, specially with regard to excisability of plant and machinery assembled at site and fixed to the ground - Central Excise - 13/90-CX.1

Definition and scope of the term 'Goods' for the purpose of charging duty under Central Excise and Salt Act, 1944, specially with regard to excisability of plant and machinery assembled at site and fixed to the ground Circular No. 13/90-CX.1 Dated 18-4-1990 [From F.No. 4/1/90-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Definition and scope of the term 'Goods' for the purpose of charging duty under Central Excise and Salt Act, 1944, specially with regard to excisability of plant and machinery assembled at site and fixed to the ground. A doubt has been raised regarding the scope of the term 'Goods' for the purpose of charging duty under Central Excise Law particularly with reference to the excisability of plant and machinery assembled at site. The said issue has since been examined in the Board. 2. The Board considered the scope of the terms 'Goods' for the purpose of Central Excise and noted that this term is not defined in the Central Excise and Salt Act, 1944. The Board also took note of the provisions of the Constitution regarding the definition of the term 'goods' as enshrined in Article 366 (12) of the Constitution, which defines 'goods' as "Goods includes all materials, commodities and articles" and the definition of the term 'goods' as per the Sale of Goods Act, 1930. The article 366(12) of constitution does not define the term 'goods' in an exhaustive manner but it is an inclusive definition. 3. The Board further considered whether the plant and machinery fixed to the ground would be considered as immovable property as per the definition of immovable properties as given in the General Clauses Act which states that immovable property shall include land and benefits to arise out of land, and things attached to earth or permanently fastened to anything attached to the earth. 4. In the light of various provisions of the Law and Constitution referred above, Board has decided that under Article 141 of the Constitution, Supreme Court's present interpretation of the term "goods" (occurring in Sec.3, of the Central Excise and Salt Act,1944 in the cases of D.C.M., South Bihar Sugar Mills, Bhor Industries, Narne Tulaman etc. is the law of land and the Department is duty bound to follow it. 5. It has also been decided by the Board that machinery, which is superficially attached or bolted to a prepared foundation on the ground, in order that its operation is vibration-free, does not, by the reason, become immovable property, because it can easily be unbolted and bought and sold (example: diesel engine, generating set, power-loom etc.). 6. This may be brought to the notice of field formation for their guidance.