Fabricated tower and lattice mast components qualify as excisable goods when they acquire a distinct commercial identity before erection.

Fabricated tower and lattice mast components made from iron and steel inputs were treated as manufactured excisable goods because the cut, punched, drilled, welded and finished parts acquired a distinct commercial identity before being fixed at site. The principle applied was that movable articles with separate identity remain excisable even if later incorporated into an immovable structure, so the components were classifiable under Chapter sub-heading 7308.20. On that basis, the demand under Section 11A of the Central Excise Act, 1944 was sustained and relief was denied.

---

---

Issues: (i) Whether tower and lattice mast structures fabricated from iron and steel inputs and erected at site amounted to manufacture of excisable goods, and whether they were classifiable under Chapter sub-heading 7308.20.

Analysis: The inputs such as angles, pipes, tubes, flats, plates and sheets were cut, punched, drilled, welded, stamped, straightened, galvanised and finished into identifiable structural components having a distinct commercial identity before being fixed in the erected structure. Applying the principle that movable articles fabricated with separate identity are excisable goods even if later incorporated into an immovable structure, the fabricated tower components were treated as manufactured goods. The earlier view that no new goods came into existence was held to be inconsistent with the Larger Bench ruling and the later Division Bench decision following it.

Conclusion: The fabricated tower and lattice mast components were manufacture of excisable goods and were classifiable under Chapter sub-heading 7308.20; the demand under Section 11A of the Central Excise Act, 1944 was sustainable and the assessee was not entitled to relief.

---