Marketability of installed systems governs excisability; non-removable CCTV and fire alarm systems failed the movable goods test.

Installed CCTV and fire alarm systems that could not be removed from the site without prior dismantling were treated as not satisfying the test of marketability as movable goods for excise purposes. The Tribunal applied the principle that excisability requires goods to have the character of movable, marketable goods, and treated the earlier decision on installed fire alarm systems as applicable on the facts. On that basis, pre-deposit of duty and penalty was waived and recovery was stayed pending disposal of the appeal.

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Issues: Whether the CCTV and fire alarm systems, which could not be removed from site without prior dismantling, were excisable goods liable to classification under the cited tariff headings and whether pre-deposit of duty and penalty should be waived pending appeal.

Analysis: The items were installed systems and, on the stated facts, could not be moved as such from the site without first being dismantled. On that basis, the principle that goods must have the character of marketable movable goods for excisability applied. The earlier decision concerning installed fire alarm systems was treated as applicable to the facts before the Tribunal.

Conclusion: The pre-deposit of duty and penalty was waived and recovery was stayed pending disposal of the appeal, in favour of the assessee.

Ratio Decidendi: An installed system that cannot be removed from the site without dismantling does not satisfy the test of marketability as movable goods for excise purposes.

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