Manufacture and immovable property test applied to installed CTC machine, which remained excisable despite earth fixation.

Assembly of different segments and components of a CTC machine was treated as manufacture because the completed machine emerged as a distinct, marketable excisable product. Fixing the machine to the earth at the buyer's site for stability, efficiency, or wobble-free operation did not by itself make it immovable property or non-excisable. The reasoning distinguished Triveni Engineering on its facts and relied on the accepted departmental approach in a similar matter involving the same respondent, where proceedings had been dropped. On that basis, the demand was not sustained and the order setting it aside was upheld.

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Issues: Whether assembly of different segments and components of the CTC machine amounted to manufacture and whether the machine, when fixed to the earth at the buyer's site, became immovable property and hence non-excisable.

Analysis: The Adjudicating Authority had examined the nature of the CTC machine and applied the principle that mere fixing of machinery to the earth for stability, efficiency, or wobble-free operation does not by itself make the machine immovable. The earlier view in Triveni Engineering was distinguished on the facts, and reliance was placed on the accepted departmental approach in a similar matter involving the same respondent, where the charges had been dropped. On that reasoning, the assembled CTC machine was treated as a marketable excisable product and not as immovable property merely because it was rooted to the ground after installation.

Conclusion: The appeal was rejected and the order setting aside the demand was upheld.

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