Assessable value and excisability: bought-out site supplies and immovable boiler installation were outside duty liability.

Value of bought-out items directly supplied to the site could not be added to the assessable value of goods cleared from the factory, because the assessee manufactured and cleared only parts from the factory and duty was payable only on those goods. Boilers erected and installed at site, which became immovable property, were not excisable goods, so no duty could be demanded on the completed installation. On that basis, the demand was unsustainable and the impugned orders were set aside in favour of the assessee.

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Issues: Whether the value of bought-out items directly supplied to the site could be included in the assessable value of the goods cleared from the factory, and whether duty could be demanded on boilers erected and installed at site which became immovable property.

Analysis: The appellant cleared only parts from the factory and paid duty on those parts. The bought-out items never entered the factory and were supplied directly to the site. The boiler in question emerged only at site as an immovable property and, therefore, was not excisable goods. Duty liability arises only on goods manufactured by the assessee, and there was no basis to add the value of bought-out items to the assessable value of the factory-cleared goods.

Conclusion: The demand was not sustainable and the impugned orders were set aside in favour of the assessee.

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