Immovable storage vessels assembled at site were held prima facie non-excisable, supporting waiver of pre-deposit and stay.

Storage vessels assembled at the customer's site in CKD condition through fabrication, welding, erection, testing and allied work were treated as prima facie immovable property after completion, so they did not appear to be excisable goods. A Board order under Section 37B of the Central Excise Act supported the view that such huge tanks, once erected and incapable of being physically moved, are not movable goods liable to duty. On that basis, the applicants were found to have a strong prima facie case and pre-deposit of duty and penalty was dispensed with, with recovery stayed pending appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery in respect of duty and equal penalty; and whether the goods involved, being storage vessels assembled at site, were prima facie not excisable goods because they became immovable property on erection.

Analysis: The dispute related to large storage vessels removed in segments in CKD condition and assembled at the customer's site through fabrication, welding, heat treatment, erection, testing and allied work. The Board's order issued under Section 37B of the Central Excise Act supported the view that such huge tanks, erected stage by stage and incapable of being physically moved after completion, are not movable goods and therefore do not attract excise duty. On that basis, the applicants were found to have a strong prima facie case.

Outcome: Pre-deposit of duty and penalty was dispensed with and recovery was stayed pending disposal of the appeal.

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