Embedded storage racks treated as immovable property, so central excise duty did not apply after site erection.

Storage racks fabricated in components, welded at site and embedded to earth for installation in clients' premises were treated as immovable property once erected, not as movable excisable goods. The record showed no clearance of completed racks as marketable goods and no basis to treat the site activity as piecemeal removal to evade duty. Because dismantling would cause damage and the racks were intended to remain fixed and inseparable from the earth, central excise duty was held inapplicable and the appellant's liability was negatived, with consequential relief left to be worked out subject to verification.

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Issues: Whether the storage racks assembled and welded at site, and embedded to earth for use in clients' premises, constituted excisable goods or immovable property not liable to central excise duty.

Analysis: The racks were fabricated in components, brought to site, welded and embedded to earth only upon installation. The record did not show clearance of completed racks as movable goods or any intention to evade duty by piecemeal removal. The adjudication had not effectively rebutted the contention that the racks came into existence as a fixed structure only after erection at site. Since dismantling would cause damage and the racks were intended to remain inseparable from the earth, the activity resulted in immovable property rather than movable excisable goods.

Conclusion: The racks were not liable to central excise duty, and the appellant's liability was negatived.

Final Conclusion: The appeal was allowed, and consequential relief was left to be worked out in accordance with law, subject to verification.

Ratio Decidendi: Goods that become embedded to earth and acquire the character of immovable property upon erection at site do not constitute excisable goods liable to central excise duty.

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