Immovable site-installed equipment fails the marketability test and is not liable to central excise duty.

A micro spray water cooling system assembled and installed at site was treated as an immovable structure, because the pipes, nozzles, joints and related parts were embedded in concrete pillars and firmly attached to the ground. Since removal would require breaking the installed components, the system was not capable of being brought to market as such. Applying the settled test under central excise law that duty arises only on goods that are marketable and movable, the system did not qualify as excisable goods. Central excise duty was therefore not leviable.

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Issues: Whether the Micro Spray Water Cooling System assembled and installed at site was movable marketable goods liable to central excise duty as manufactured goods.

Analysis: The assembled system, after installation of pipes, nozzles, joints and related parts, was found to be embedded in concrete pillars and firmly attached to the ground. The structure was not removable by simple dismantling and any theoretical dismantling would involve breaking the installed parts. Applying the settled test that excise duty is attracted only when the article is goods and is capable of being brought to market, the system was treated as an immovable structure rather than excisable goods. The earlier reliance on cases concerning site-assembled equipment did not alter this position because the decisive factor was immovability and absence of marketability.

Conclusion: The system was not marketable excisable goods and central excise duty was not leviable; the appeal succeeded.

Ratio Decidendi: A structure assembled and permanently embedded at site, which becomes immovable and is not capable of being brought to market as such, does not satisfy the test of excisable goods under central excise law.

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