Site-embedded fabricated structures are not excisable goods when they lack marketability as movable property.

Hydraulic gates, hoists and allied structures fabricated for a turnkey project and assembled at the site by embedding them in the earth were treated as non-marketable, immovable installations rather than excisable goods. The controlling principle applied was that articles made to specific requirements and erected as part of site installation, without movable marketability, do not satisfy the test for central excise levy. On that basis, the fabricated structures were not liable to excise duty, and the related demand and penalty could not be sustained.

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Issues: Whether hydraulic gates, hoists and allied structures fabricated for a turnkey project and assembled at site by embedding them in the earth were excisable goods liable to central excise duty.

Analysis: The dispute was covered by earlier authority holding that fabrication of hydraulic gates, hoists, gantry cranes and similar structures, when assembled at the customer's site and embedded to the land, do not constitute goods for the purposes of central excise. The determinative consideration was that such structures, made to specific requirements and erected as part of the site installation, are not marketable as movable goods and therefore do not attract levy of excise duty. The decision relied upon by the appellants had also attained finality after dismissal of the challenge before the Supreme Court.

Conclusion: The fabricated gates, hoists and allied structures were not excisable goods and no central excise duty was payable.

Final Conclusion: The impugned demand and penalty could not survive, and the appeal was allowed with consequential relief.

Ratio Decidendi: Fabricated structures that are erected at site and embedded in the earth, lacking marketability as movable goods, are not liable to central excise duty.

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