Movable excisable goods test: signages detachable and re-erectable at site remained dutiable despite foundation fixing

Signages assembled at a factory, dismantled for transport, and re-erected at petrol bunk sites were treated as movable excisable goods because they could be detached and shifted without losing identity, even though fixed on concrete foundations by bolts. The Court held that the dispute was predominantly factual and that site erection did not make the signages immovable property. A Board circular on non-dutiability of immovable final products in CKD or unassembled form did not assist the assessee because the signages were found to be movable. Duty demand and connected penalties were upheld, and the appeal was dismissed.

---

---

Issues: (i) Whether signages assembled and installed at petrol bunks were movable excisable goods or immovable property not liable to central excise duty. (ii) Whether the Board circular regarding non-dutiability of immovable final products in CKD or unassembled form assisted the assessee.

Issue (i): Whether signages assembled and installed at petrol bunks were movable excisable goods or immovable property not liable to central excise duty.

Analysis: The Tribunal's finding, affirmed by the Court, was based on the documentary record and witness statements showing that the complete signages were assembled at the factory, inspected, dismantled for transport, and re-erected at the sites. The signages were found to be capable of being detached and shifted without damage and were fixed on concrete foundations by bolts. On those facts, the Court held that the issue was predominantly one of fact and that the signages did not become immovable property merely because they were erected at the destination site.

Conclusion: The signages were held to be excisable movable goods, and the assessee's challenge on this issue failed.

Issue (ii): Whether the Board circular regarding non-dutiability of immovable final products in CKD or unassembled form assisted the assessee.

Analysis: The circular applied only where the final product itself was immovable and therefore not excisable. Since the concurrent factual finding was that the signages were not immovable, the circular did not advance the assessee's case. The Court therefore declined to apply the circular to exclude duty.

Conclusion: The Board circular was inapplicable and the assessee's contention failed.

Final Conclusion: The duty demand and connected penalties, as sustained by the Tribunal, were upheld and the appeal was dismissed.

Ratio Decidendi: An item that is capable of being assembled, dismantled, transported and re-erected without losing its identity remains movable and excisable even if it is fixed to a concrete foundation at the site of installation; a circular on immovable goods cannot apply where the final product is found to be movable.

---