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TMI Blog1994 (12) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... for being bought and sold. Therefore, both the tests, as explained by this Court, were not satisfied in the case of appellant as the tube mill or welding head having been erected and installed in the premises and embedded to earth they ceased to be goods within meaning of Section 3 of the Act. Appeal allowed of assessee. The order passed by the Tribunal is set aside. The question of law raised by the assessee is decided by saying that the plant of tube mill and welding head erected by the appellant and installed as a part of expansion programme was not exigible to duty. - 416(NM) of 1987 - - - Dated:- 9-12-1994 - R.M. Sahai and S.B. Majmudar, JJ. [Judgment per : R.M. Sahai, J.]. - The question of law that arises for consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsisted of acquiring various items and components and installing them for making a complete unit for production of steel tubes. Certain items of the plant and machinery such as uncoiler, looper, etc. were purchased from the market and embedded to earth and installed to form a part of the tube mill. Components purchased from the market were like motors, coupling, gear boxes, bearing, castings etc. These were assembled and installed on the site to form part of the tube mill which was also covered in the process of welding facility. The tube mill, according to appellant, was thus not a specific machine and component but consisted of several machines and components which after the installation got embedded to earth and formed part of the plant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tubes were produced out of duty paid raw material, recorded a note on the status of the working of the factory and observed that this was a thing of major importance and all the plants and machinery worth about Rs. 60 lakhs were added from 1980 onwards. On 30th March the appellant submitted copies of the balance sheets for the years 1981-82 and 1982-83. On the same day the factory was visited by a team of officers who sent a letter, the relevant portion of which is extracted below : "I have been directed to collect following documents/records and figures in respect of your unit for the last five financial years. I shall be thankful if these figures/records are made available. 1.Balance Sheet. Project Report submitted to D.G.T.D./Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, therefore, no duty was leviable on it. In August, 1985 a show cause notice was issued for contravention of provisions of Sections 6 and 9 of the Act and Rules 9, 52A, 173B, 173C, 174 read with [Rules] 173Q, 210 and 226 of the Central Excise Rules inasmuch as the appellant had manufactured and installed tube mill and welding head falling under Tariff Item 58 of the First Schedule of the Act without obtaining central excise liccence, without payment of appropriate central excise duty leviable thereon and without observing other excise formalities. The reply was sent by the appellant in October, 1984 and it was claimed that even though the plant and machinery was erected and installed in the premises of the appellant after purchasing va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisable goods' is defined by sub-section (d) of Section 2 to mean `goods specified in the Schedule to the Central Excise Tariff Act, 1985 as being subject to a duty of excise and includes salt'. The words `excisable goods'. therefore, has a connotation of its own. 5.In several decisions rendered by this Court commencing from Union of India Anr., v. Delhi Cloth and General Mills Co., Ltd., 1977 (1) E.L.T. (J 177) (SC) = AIR 1963 SC 791 to Indian Cable Co. Ltd. v. Collector of Central Excise, Calcutta 1994 (74) E.L.T. 22 the twin test of exigibility of an article to duty under Excise Act are that it must be a goods mentioned either in the Schedule or under Item 68 and must be marketable. In Delhi Cloth Mills (supra) it having been held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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