Marketability of assembled air-conditioning plant guided prima facie waiver of duty deposit, penalty and recovery stay.

Assembled central air-conditioning plant was examined for excise duty on the basis that its components, when put together in a department store, constituted marketable goods. The Tribunal noted the contention that the plant could not be removed or sold as such without dismantling, and that only the separate components could be taken apart. It held on a prima facie basis that the relevant inquiry was marketability of the plant as a whole, not merely whether it was movable or immovable, and treated the matter as covered by the cited Supreme Court decision. Waiver of deposit of duty, penalty and redemption fine was granted and recovery was stayed.

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Issues: Whether the assembled central air-conditioning plant was marketable goods for the purpose of duty, and whether the applicant was entitled to waiver of deposit and stay of recovery.

Analysis: The application concerned duty, penalty and redemption fine imposed on the footing that the components, when assembled in the department store, constituted a central air-conditioning plant. The Tribunal noted the contention that the plant could not be removed or sold as such without dismantling and that the components alone could be taken apart. On a prima facie view, the relevant question was marketability of the plant as a whole, not merely whether it was movable or immovable. The Tribunal found that the plant appeared incapable of being removed and refitted elsewhere without disturbing its components, and treated the matter as prima facie covered by the cited Supreme Court decision.

Outcome: Waiver of deposit of duty, penalty and redemption fine was granted, and recovery was stayed.

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