Excisability depends on mobility and tariff coverage; an embedded spray paint booth was held not liable to excise duty.

Excise duty applies only where an article has the twin attributes of mobility and marketability, or is specifically named in the tariff schedule. A spray paint booth fixed to the earth, incapable of dismantling without damage and unable to function after removal, lacks the mobility required for excisability and is therefore immovable property. Although the booth may be marketable by description, it was not specifically covered under the relevant tariff entry. Applying the binding ratio in Triveni Engineering and the Section 37B order, the article was held not to be excisable goods and not chargeable to excise duty under the entry in question.

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Issues: Whether a spray paint booth is excisable goods chargeable to excise duty under Entry 8424.00 of the Schedule to the Central Excise Tariff Act, 1985.

Analysis: For levy of excise duty, the article must satisfy the twin attributes of excisable goods, namely mobility and marketability, or it must be specifically covered by name in the tariff schedule. The spray paint booth was found to be embedded to the earth, incapable of dismantling without damage, and unable to function thereafter. On those findings, it lacked mobility and was therefore immovable property. Although it had marketability by that name, it was not described under that name in the tariff entry. The issue was also covered by the binding ratio in Triveni Engineering and by the Central Board's Section 37B order.

Conclusion: The spray paint booth is not excisable goods and is not chargeable to excise duty under the tariff entry in question.

Ratio Decidendi: An article that is embedded to the earth and cannot be dismantled without damage lacks the mobility required for excisability and is not liable to excise duty unless it is specifically covered by the tariff entry.

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