Duty-paid goods cannot be taxed again merely because installation occurs at the customer's premises.

Office furniture systems and work stations classified under Chapter heading 94.03 were treated as already duty-paid goods, and the demand was viewed as a possible second levy on the same goods after installation at customers' premises. The appellant relied on an earlier classification order showing that the manufacturers' supplies had been placed under the same tariff heading. On this prima facie basis, the tribunal found a strong case that no further central excise duty could be demanded merely because the goods were installed at site, and it waived pre-deposit of both duty and penalty.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of duty and penalty on the ground that the goods in question were already duty-paid and could not be subjected to duty again.

Analysis: The dispute related to office furniture systems/work stations classified under Chapter heading 94.03. The appellant's case was that the goods installed at customers' premises were duty-paid goods procured from manufacturers and that no further duty could be levied merely because they were installed at site. The earlier classification order referred to in support of the appellant indicated that the goods supplied by the manufacturers had already been treated as falling under the same tariff heading. On a prima facie view, the goods being installed were already subjected to central excise duty and the demand appeared to involve levy on the same goods once again.

Conclusion: The appellant established a strong prima facie case for waiver of pre-deposit, and pre-deposit of both duty and penalty was waived.

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