Site-fabricated structures lacking movability and marketability were not excisable goods, defeating the duty demand.

Structures fabricated at the site during erection of a thermal power station, using steel plates, angles, channels and beams, were held not to be excisable goods because they had no independent existence as movable property. The tribunal applied the settled tests of movability and marketability and found that the structures were embedded to earth, formed part of the plant, and were not shown to be capable of dismantling and removal for use elsewhere. As those essential conditions for excisability were absent, the classification reference under Heading 73.08 did not sustain the duty demand, and the demand was found unsustainable.

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Issues: Whether structures fabricated at site during erection of a thermal power station, after use of steel plates, angles, channels and beams, are excisable goods classifiable under Heading 73.08 of the Central Excise Tariff Act, 1985 and liable to duty.

Analysis: The structures came into existence at the site itself during erection of the thermal power plant, were embedded to earth, and formed part of the plant without separate existence as removable goods. The record did not establish that they were movable or capable of dismantling and removal for use elsewhere. The reasoning also noted the tariff entry for goods fabricated at site for use in construction work at such site, and applied the settled requirements of movability and marketability for excisability.

Conclusion: The fabricated structures did not satisfy the tests of movability and marketability and were not excisable; the duty demand was unsustainable. The appeal was dismissed.

Ratio Decidendi: Structures fabricated and embedded at the work site for erection of a plant, which do not have independent movability or marketability, are not excisable goods notwithstanding classification references in the tariff.

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