Site-erected conveyor systems embedded to earth are immovable property and not excisable goods for central excise duty.

An overhead conveyor system assembled and erected in the factory from duty-paid bought-out components, and embedded to the earth, was treated as immovable property because it could not be moved without dismantling. Central excise is leviable only on goods, so the system failed the test of marketability and did not qualify as excisable goods. No central excise duty was payable on the site-erected conveyor system.

---

---

Issues: Whether the overhead conveyor system erected in the factory from duty-paid bought-out components constituted goods liable to central excise duty.

Analysis: The conveyor system was assembled and erected at site from purchased duty-paid parts and was embedded to the earth. A system so erected, incapable of being moved to another place without dismantling, acquires the character of immovable property. Since central excise is leviable only on goods and not on immovable property, such a conveyor system fails the test of marketability and does not amount to goods for the purpose of levy. The view was supported by the cited decisions on site-erected conveyor systems and other erected machinery.

Conclusion: The overhead conveyor system was not excisable goods and no central excise duty was payable on it.

---