TRIVENI ENGINEERING AND INDUSTRIES LTD. AND ANR. versus COMMISSIONER OF CENTRAL EXCISE AND ANR.

TRIVENI ENGINEERING AND INDUSTRIES LTD. AND ANR. versus COMMISSIONER OF CENTRAL EXCISE AND ANR.

Turbo alternators, when erected and fixed permanently on a platform constructed on land, are immovable property and do not satisfy the twin conditions required for exigibility to excise duty; they do not find a place eo nomine in the Schedule and fail the marketability and mobility tests. As such, turbo alternators are not 'excisable goods' under Heading 85.02 of the Central Excise Tariff Act, 1985 and excise duty cannot be levied on them.

Parties
Appellant: Triveni Engineering and Industries Ltd.; Respondent: Commissioner of Central Excise
Jurisdiction
India
Judgment Date
08 August 2000
Procedural Posture
Civil Appeal / Appeal From Customs, Excise and Gold (control) Appellate Tribunal
Outcome
Appeal allowed
Legal Topics
Excise Duty, Definition of 'goods', Manufacturing Process, Marketability, Immovable Property
Tax Law Excise Duty Definition of 'goods' Manufacturing Process Marketability Immovable Property

Case Brief

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Parties

Triveni Engineering and Industries Ltd.

Appellant

Commissioner of Central Excise

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether turbo alternators are 'excisable goods' under the Central Excises and Salt Act, 1944 and Central Excise Tariff Act, 1985
  2. 2 Whether the process of assembling a turbo alternator constitutes 'manufacture'
  3. 3 Whether turbo alternators are marketable and movable or are immovable property

Ratio Decidendi

Turbo alternators, when erected and fixed permanently on a platform constructed on land, are immovable property and do not satisfy the twin conditions required for exigibility to excise duty; they do not find a place eo nomine in the Schedule and fail the marketability and mobility tests. As such, turbo alternators are not 'excisable goods' under Heading 85.02 of the Central Excise Tariff Act, 1985 and excise duty cannot be levied on them.

Court Disposition

Appeal allowed

Orders

  • Order of Customs, Excise and Gold (Control) Appellate Tribunal set aside
  • Turbo alternator held not liable to excise duty