Immovable property classification defeats penalty where the installed Coal Handling Plant was not excisable goods.

Penalty for a Coal Handling Plant supplied and installed at site could not survive once the plant had already been held to be immovable property, consisting of civil structures, conveyors and supporting structures, and therefore not marketable as goods. That classification had been affirmed by the Supreme Court through dismissal of the Revenue's civil appeal. On that binding position, the assumption that the plant was excisable failed, and the penalty was set aside.

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Issues: Whether penalty could be sustained on the appellant in respect of the Coal Handling Plant supplied and installed at site, when the plant had been held to be immovable property and therefore not excisable.

Analysis: The penalty had been imposed on the appellant on the footing that the Coal Handling Plant ordered from the supplier was excisable. The Tribunal noted that the very same plant had already been held to be immovable property, consisting of large civil structures, conveyors and supporting structures spread over a vast area, and therefore not marketable as goods. That view had been affirmed by the Supreme Court by dismissal of the Revenue's civil appeal. In view of that binding position, the basis for imposing penalty no longer survived.

Conclusion: The penalty was not sustainable and was set aside in favour of the appellant.

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