Erected elevators and escalators are not excisable goods when permanently fixed to buildings, though factory-cleared parts remain dutiable.

Elevators and escalators, once assembled, erected and commissioned at site, were treated as permanently affixed to the building and therefore as part of immovable property, not as goods assessable under Tariff Item 68 for central excise. The separately manufactured component parts cleared from the factory remained excisable goods and continued to attract duty at the applicable rate. No additional duty could be imposed merely because those parts were later assembled and installed at site.

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Issues: Whether elevators and escalators erected and installed in buildings, after assembly and commissioning at site, were goods assessable under Tariff Item 68 of the Central Excise Tariff, and whether only the component parts manufactured and cleared from the factory remained dutiable.

Analysis: The installation of elevators and escalators was treated as a composite process culminating in an article firmly affixed to the building and intended to remain in place. On that footing, the installed system was regarded as part of immovable property and not as goods for the purpose of central excise assessment. At the same time, the component parts manufactured and cleared from the factory retained their character as excisable goods and were liable to duty at the appropriate rates. No further duty could be levied merely because those parts were later assembled, installed and commissioned at site.

Conclusion: The erected and installed elevators and escalators were not assessable under Tariff Item 68 as goods, but the component parts cleared from the factory remained chargeable to duty.

Ratio Decidendi: Articles that, on erection and installation, become permanently affixed to immovable property do not constitute goods for central excise levy, though their separately manufactured and cleared components remain dutiable.

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