Plant and machinery for exemption purposes includes a mobile crane used in factory operations, even if not permanently fixed.

For exemption under a notification linked to the ceiling on capital investment in plant and machinery, a mobile crane used inside the factory for handling materials and supporting manufacturing operations was treated as part of the industrial unit's plant and machinery. The Tribunal held that the expression "plant and machinery" is wide enough to include equipment used for industrial activity within the premises, and that physical embedding in the earth or permanent fixation is not necessary. Because the crane was actually used for transport and handling during manufacture, its value was includible in the capital investment computation, causing the exemption limit to be exceeded.

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Issues: Whether the value of a mobile crane used within the factory for handling materials and facilitating manufacturing operations is includible in the ceiling on capital investment in plant and machinery for claiming exemption under the notification.

Analysis: The notification exempted specified goods from central excise duty where the total value of capital investment on plant and machinery installed in the industrial unit did not exceed the prescribed limit. The dispute turned on whether the mobile crane, though not embedded in earth or permanently fixed, was machinery installed in the factory. The Tribunal held that the words "plant and machinery" were wide enough to cover machinery or equipment used for industrial activity in the factory, and that physical embedding or permanent attachment was not necessary. Since the crane was in actual use within the premises for transport and handling of barges and components during manufacture, it formed part and parcel of the plant and machinery installed in the unit.

Conclusion: The value of the mobile crane was rightly included in the computation of capital investment in plant and machinery, and the exemption limit stood exceeded.

Final Conclusion: The appeal failed and the demand based on inclusion of the crane in plant and machinery was sustained.

Ratio Decidendi: For purposes of an exemption notification, machinery used in the industrial unit for manufacturing operations may constitute "plant and machinery installed" even if it is mobile and not embedded in the earth.

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