Manufacture before installation preserves excisability and supports Modvat credit for a sulphur melter attached to a tank.

A sulphur melter manufactured in the factory before installation in a tank was treated as excisable goods, because manufacture had already taken place and later fitting that made removal difficult did not negate excisability. On the facts, the melter existed as a manufactured product prior to being attached, so it could not be denied treatment as capital goods for Modvat purposes merely because it was fixed to the tank. The operative principle was that manufacture attracts central excise duty, and subsequent installation does not by itself alter the product's excisable character.

---

---

Issues: Whether the sulphur melter, manufactured in the factory and later fitted in a tank, was excisable and whether the assessee was entitled to Modvat credit as capital goods.

Analysis: The melter came into existence as a manufactured product before being installed in the tank. Once goods are manufactured, they attract central excise duty; later fitting or attachment in a manner that makes removal difficult does not, by itself, negate excisability. On the facts found, the melter was manufactured first and then installed, so it could not be denied credit merely on the ground that it was attached to the earth.

Conclusion: The melter was held to be excisable, and the assessee was held entitled to Modvat credit as capital goods.

---