Site-fabricated steel structures fixed to earth are not excisable goods when assembled only at the project site.

Steel structures fabricated and erected at a project site from supplied materials were treated as non-excisable because they came into existence only through site-based assembly and were fixed to the earth. The analysis relied on the settled position that turnkey erection activity is not, by itself, manufacture of marketable goods, and noted that the Board's clarification on site-assembled plant and machinery supported that view. The distinction from the cited larger bench decision was that the structures were not movable goods at any stage. On that footing, the duty demand was held unsustainable and the order dropping duty, interest and penalty was sustained.

---

---

Issues: Whether steel structures fabricated and erected at site were excisable goods classifiable under Heading 7308.90 and liable to central excise duty.

Analysis: The dispute concerned steel structures fabricated at the project site from materials supplied for erection of plant structures. The reasoning accepted the settled view that, prior to the tariff entry for Heading 7308 becoming effective, conversion of materials into site-based structures did not amount to manufacture in the manner suggested by Revenue. It was also noted that turnkey projects involving assembly or erection at site are not to be treated as excisable goods, and that the Board's clarification on site-assembled plant and machinery supported the view that such structures, once fabricated and fixed at site, do not acquire the character of marketable excisable goods. The distinction drawn from the cited larger bench decision was that, in the present case, the structures came into existence only through assembly at site and were fixed to the earth.

Conclusion: The steel structures fabricated and erected at site were not excisable goods and the duty demand was unsustainable.

Final Conclusion: The Revenue appeal failed and the order dropping duty, interest and penalty was sustained.

Ratio Decidendi: Site-fabricated structures that come into existence only upon erection and become fixed to the earth are not excisable goods merely because they are assembled from duty-paid materials at the project site.

---