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TMI Blog2005 (10) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... from M/s. ABB for design, supply, erection and commissioning of the Complete Terminal Automation System for Vijayawada and Rajahmundry Terminals. The issue in this appeal is excisability of the 'Terminal Automaton System (TAS)'. The Commissioner of Central Excise held that the 'Terminal Automation System' is excisable and classifiable under Heading 84.71 of the Central Excise Tariff. Hence he demanded duty of Rs. 1,12,75,052/- under proviso to Section 11A(1) of the Central Excise Act, 1944. Equal penalty was imposed under Section 11AC. Interest was demanded under Section 11AB. Further he ordered confiscation of the TAS under Rule 173Q of Central Excise Rules, 1944. But he gave an opportunity to M/s. HPCL to redeem the same on payment of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uter system is perverse and contrary to facts and evidence. A computer system would not have pipelines and would not be erected or fabricated. (iv) The evidence tendered during investigation by HPCL on 19-1-2001 which is at pages 49-50 of the Paper Book filed on 11-10-2004 shows that there is a turnkey contract, that the construction of the system by piece-by-piece erection at site and that it was fastened to the earth and was not intended to be removed as a system as whole and it became a permanent erection. (v) The deposition of the official of HPCL, Shri K. Mohan Babu on 19-1-2001, in answer to the question at page 55 of the Paper Book shows that the system was erected at site on a strong foundation and base frame, desig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Ltd. [2004 (165) E.L.T. 487 (S.C.)] (vi) CCE v. Damodar Ropeways Constructions Co. (P) Ltd. [2003 (151) E.L.T. 3 (S.C.)] (vii) Thermax v. CCE [1998 (99) E.L.T. 481 (S.C.)] (viii) Ion Exchange (I) Ltd. v. CCE [2003 (159) E.L.T. 499 (Tri.-Che.)] (ix) Cethar Vessels Ltd. v. CCE [2002 (143) E.L.T. 336 (T-Che.)] (x) Blue Star Ltd. v. CCE [2002 (143) E.L.T. 391 (T. -Del.)] (xi) CCE v. Radiant Electronics Ltd. [1996 (85) E.L.T. 102 (T)] (xii) Ganpati Ropeways Pvt. Ltd. v. CCE [1999 (112) E.L.T. 395 (T)]. 5. At the time of hearing on 30-8-2005 and 31-8-2005, the learned SDR filed some expert opinion from one Dr. E.V. Prasad, Professor of Department of Computer Science and Engineering. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of petroleum products through pipeline, storage in tank farm, loading to distribution carriers, sealing of carriers, gases control/stock/truck loading area and management of reporting of the data, etc. The primary responsibility of the TAS shall be to ensure that the product loading by permanently take place in a secure, orderly, timely and well documented manner. On going through the photographs of the system, we find that a lot of civil work is involved in the erection of the system. The whole system is embedded to the earth. It is very evident that without causing much damage, the entire system cannot be shifted to any other place. In fact, it is very clear that the system is tailor made and cannot be used elsewhere as such. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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