Site-erected cranes and immovable property: non-marketable installations are not excisable goods for central excise duty.

Cranes assembled and erected at site were held not to be excisable goods because the decisive tests were marketability and whether manufacture resulted in a structure embedded to earth. On the facts, the crane was not sold as an identifiable market product; it came into existence through site assembly, erection on a foundation, and commissioning. A structure so erected and embedded to earth is treated as immovable property and does not answer the description of excisable goods. The cited precedent on non-marketable, immovable installations supported this view, so central excise duty, interest, and penalties could not survive.

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Issues: Whether the cranes assembled and erected at site were excisable goods liable to central excise duty, interest and penalties.

Analysis: The decisive tests applied were whether the article was brought to market as such for sale and whether it was manufactured step by step in a manner that resulted in embedding to earth. On the facts, the crane was not sold as a marketable product in an identifiable condition, but was erected on a foundation and came into existence through site assembly and commissioning. A structure so erected and embedded to earth is treated as immovable property and, therefore, does not answer the description of excisable goods. The view was consistent with the cited precedent on immovable, non-marketable installations.

Conclusion: The cranes were not excisable goods and the demand of duty, interest and penalties could not survive.

Ratio Decidendi: A structure assembled and erected at site, which is embedded to earth and is not marketable as such, is immovable property and is not liable to central excise duty.

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