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of <h1>Appeal successful: Assembled cooling system deemed immovable, exempt from excise duty</h1> The appellant's appeal against a demand for central excise duty on the 'Micro Spray Water Cooling System' they assembled was successful. The court ... Manufacture - Micro Spray Water Cooling System - whether ‘Micro Spray Water Cooling System’, firmly fixed to the ground, fabricated and installed by the appellant will attract central excise duty as goods manufactured at site? - Held that: - From the photographs of the assembled structure brought to the notice of the bench and the method of construction, it is observed that after assembling of the pipes, nozzles, joints etc. the resultant product gets embedded/ attached to the concrete structure and is not removable by simple activities of unbolting of nuts and bolts. Theoretical possibility of dismantling such structure will result into breaking of plastic pipes and parts - the structure assembled at site is firmly embedded/attached to the concrete pillar and becomes immovable during assembling and cannot be considered as marketable goods attracting central excise duty - appeal allowed - decided in favor of appellant-assessee. Issues involved:Whether the 'Micro Spray Water Cooling System' assembled by the appellant at the site attracts central excise duty as goods manufactured at the site.Analysis:The appeal was filed against the Order-in-Appeal confirming a demand of Rs. 1,88,685 along with interest. The appellant argued that the system they manufactured and installed is not marketable goods as it becomes firmly fixed to the ground during the installation process. The appellant relied on case laws to support their argument, distinguishing the case law of Narne Tulaman Manufacturers Pvt. Ltd. The Revenue contended that the system can be dismantled and reinstalled elsewhere, making it marketable. The issue was whether the system qualifies as excisable goods. The first appellate authority classified the system under a specific chapter sub-heading, relying on the Narne Tulaman case, where a weigh-bridge assembled at the site was considered manufactured goods.The bench examined the case records and the arguments presented. The appellant cited the case of Auto Measurematic Ltd. to distinguish the Narne Tulaman case, emphasizing that the assembled structure becomes immovable once fixed to the ground. The bench observed that the system, once assembled, is embedded in concrete and cannot be easily dismantled without damage. Referring to the Mittal Engineering case, the bench concluded that goods attached to the earth and immovable do not satisfy the criteria of being marketable. They noted that similar circumstances in the erection of water treatment plants were not considered excisable goods in previous cases. The bench emphasized that the system assembled by the appellant, firmly fixed with concrete, does not attract central excise duty as marketable goods. Consequently, the appeal was allowed.In conclusion, the judgment focused on whether the 'Micro Spray Water Cooling System' assembled by the appellant qualified as marketable excisable goods for central excise duty. The decision highlighted the immovability of the system once fixed to the ground, following legal precedents and settled law to determine that the system did not meet the criteria for central excise duty.
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