COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD versus SOLID & CORRECT ENGINEERING WORKS & ORS.

COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD versus SOLID & CORRECT ENGINEERING WORKS & ORS.

Setting up an Asphalt Drum Mix Plant by assembling duty paid components, fixed by nuts and bolts to a foundation without the intention of permanently attaching it to the earth, does not constitute manufacture of immovable property and thus is exigible to excise duty. Respondents are not entitled to exemption under Notification No.1/93-CE based solely on sticker size reasoning;if claim for exemption or limitation is sought, the Tribunal must re-examine those alternative contentions.

Parties
Appellant: Commissioner of Central Excise, Ahmedabad; Respondent: Solid & Correct Engineering Works; Respondent: Solid Steel Plant Manufacturers; Respondent: Solmec Earthmovers Equipment; Respondent: Solex Electronics Equipments; Respondent: Solidmec Equipments Ltd.
Jurisdiction
India
Judgment Date
08 April 2010
Procedural Posture
Civil Appeal / Appeal From Order of Customs, Excise and Gold (control) Appellate Tribunal, Remand
Outcome
Appeals allowed. Orders of Tribunal set aside. Matters remanded for fresh disposal by Tribunal.
Legal Topics
Manufacture Under Excise Law, Movable Vs Immovable Property, Exemption Notification, Attachment to Earth, Brand Name, Exemption Qualification
Taxation Central Excise Manufacture Under Excise Law Movable Vs Immovable Property Exemption Notification Attachment to Earth Brand Name Exemption Qualification

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Parties

Commissioner of Central Excise, Ahmedabad

Appellant

Solid & Correct Engineering Works

Respondent

Solid Steel Plant Manufacturers

Respondent

Solmec Earthmovers Equipment

Respondent

Solex Electronics Equipments

Respondent

Solidmec Equipments Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Order of Customs, Excise and Gold (control) Appellate Tribunal, Remand

Legal Issues

  1. 1 Whether setting up of Asphalt Drum Mix Plant by using duty paid components amounts to manufacture of excisable goods within Section 2(d) of the Central Excise Act, 1944.
  2. 2 Whether the respondents engaged in manufacture of parts and components used for setting up Asphalt Drum/Hot Mix Plant were entitled to benefit of Notification No.1/93-CE, dated 28th February, 1993 issued under Section 5A(1) of the Central Excise Act.

Ratio Decidendi

Setting up an Asphalt Drum Mix Plant by assembling duty paid components, fixed by nuts and bolts to a foundation without the intention of permanently attaching it to the earth, does not constitute manufacture of immovable property and thus is exigible to excise duty. Respondents are not entitled to exemption under Notification No.1/93-CE based solely on sticker size reasoning;if claim for exemption or limitation is sought, the Tribunal must re-examine those alternative contentions.

Court Disposition

Appeals allowed. Orders of Tribunal set aside. Matters remanded for fresh disposal by Tribunal.

Orders

  • Orders dated 19th August 2002 and 8th April 2003 of Tribunal set aside.
  • Matters remanded to Tribunal for fresh orders, considering alternative contentions.