Factory fabrication of steel structures defeated site-exemption claim, while classification and limitation issues warranted remand for fresh consideration.

Fabricated steel structural items were found to have been manufactured in the factory and then moved to site, so the premise that they were site-manufactured and exempt from duty could not be sustained. The appellate order was therefore set aside. However, objections on duty liability, including classification and limitation, required fresh examination by the adjudicating authority. The matter was remanded for reconsideration on merits after following natural justice.

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Issues: Whether the order of the Commissioner (Appeals) was sustainable in treating the fabricated steel structural items as goods manufactured at site and exempt from duty, and whether the matter required remand for fresh adjudication.

Analysis: The goods were found to have been fabricated in the factory and thereafter transferred to the site, so the premise that they were manufactured at site was incorrect. On that basis, the order of the Commissioner (Appeals) could not be sustained. At the same time, substantial grounds were raised against the duty liability itself, including classification and limitation-related objections, which required fresh consideration by the adjudicating authority. The matter was therefore directed to be re-examined on merits after observing the principles of natural justice.

Conclusion: The order of the Commissioner (Appeals) was set aside and the matter was remanded for fresh decision on merits; the revenue succeeded to that extent.

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