9911796707
TMI Blog2005 (9) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... system, on job work, is excisable under Central Excise Act, 1944 and if excisable, who would be the person liable to discharge the duty. 1.2The appellants are manufacturers of various air-conditioning machinery at their factories and clear the same on duty payment. They also undertake erection and commissioning of Air-Condition Plants systems on the basis of indivisible work-contracts which is got executed through others. 1.3 The 'ducting' in a system is a requirement for distributing air either in an air-conditioning Plant or a ventilation system. The treated/filtered essential air is carried by the ducting to desired designated space/premises. The ducts, as they emerge, eventually take shape, are not known or/and bought and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines. The system comes into being upon assembly of its component. In such a situation there is no manufacture of goods as it is only a case of assembling of manufactured goods into a system. This cannot be compared to a fabrication where a group of machines themselves may be combined to constitute a new machine which has its own identity/marketability and is dutiable (e.g., a paper making machine assembled at site and fixed to the earth only for the purpose of ensuring vibration free movement. This would indicate that the levy under the Central Excise Act was understood to be restricted. The same cannot be extended to ducts, which come into existence by fabrication and take the shape and size unique to the building/plant to be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find force in these submissions to conclude that there is no levy of Central Excise Duties such ducts considering the instruction issued by Central Excise Board Vide No. 37B Order No. 58/1/2002-CX dated 15-1-2002 which considered various Supreme Court decision on excisability of plant and machinery erected at site and thereafter stipulate in para 4 (vi) the followings. (a) Integrated Plants/Machines, as a whole, may or may not be 'goods'. For example Plants for transportation of material (Such as handling Plants) are actually a system or a network of machines. The system comes into being upon assembly of its component. In such a situation there is no manufacture of goods as it only a case of assembly of manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore duty demand on the appellant can't be made. (e) It is found even Commissioner Bangalore and Commissioner, Mumbai have arrived at different classification for the same entity. This itself, would indicate, that Revenue is not clear on the classification of the subject. At the hearing before us, it could not be explained us why the Board in exercise of the power under Section 35E of Central Excise has not considered, one of these classifications arrived, to be not to be legal and proper. Surely there can't be two separate classifications for the same entity both being proper. Therefore the present appeal has to be allowed setting aside the order since the classification has to be uniformly same. 2.When we find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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