Site-erected storage tanks held immovable, so they were not excisable goods and excise duty demand failed.

Huge storage tanks fabricated and erected stage by stage at site were treated as immovable after completion because they could not be physically moved and sold without dismantling. Applying the Board's circular on site-erected tanks, the materials were held not to be excisable goods, so Central Excise duty was not payable. The demand and consequential penalty were therefore set aside, and the assessee's appeal succeeded.

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Issues: Whether huge storage tanks fabricated and erected at site are excisable goods liable to Central Excise duty.

Analysis: The tanks were of substantial capacity and were fabricated and installed at site. The controlling consideration was whether, after completion, they could be physically moved and sold as such. The Board's circular clarified that huge metal tanks erected stage by stage at site, which cannot be physically moved after completion and would require dismantling for disposal, are not movable and cannot be treated as excisable goods. On the facts, the circular applied fully.

Conclusion: The tanks were not excisable goods and the demand was unsustainable. The conclusion is in favour of the assessee.

Final Conclusion: The demand and consequential penalty were set aside, and the appeal succeeded.

Ratio Decidendi: Huge tanks erected at site which cannot be physically moved after completion are not movable goods and, therefore, are not liable to excise duty as excisable goods.

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