Site fabrication of immovable dock structures is not manufacture of excisable goods when the finished work is not marketable.

Site fabrication of a submarine dock roof structure, gantry beam rail, dock gates and allied components from duty-paid steel did not result in excisable goods because the items were integrated into the dry dock, fixed to the earth and not marketable as movable goods. The Tribunal treated the cutting, welding, drilling and riveting as processes that produced part of an immovable structure rather than manufactured goods. On that basis, the activity did not amount to manufacture and the duty demand could not be sustained.

---

---

Issues: Whether the items fabricated at site, namely the submarine dock roof structure, gantry beam rail, dock gates and allied structures, were excisable goods liable to duty.

Analysis: The fabricated items were made at site from duty-paid steel supplied for the dry dock project and, after cutting, welding, drilling, riveting and similar processes, became part of the dry dock structure. The Tribunal found that the structures were fixed to the earth and could not be treated as movable goods. It further held that the dock gates and gantry rails were similarly part of the immovable dry dock system and were not marketable. On that basis, the processes undertaken did not amount to manufacture of excisable goods.

Conclusion: The items were not excisable goods and the duty demand could not be sustained.

Ratio Decidendi: Site fabrication that results in an immovable structure, which is not marketable as such, does not give rise to excisable goods.

---