Site-assembled conveyor belt system treated as immovable property and outside central excise duty as goods.

A conveyor belt system fabricated, assembled, tested and commissioned at site was held to be immovable property because it came into existence only through on-site assembly and commissioning, acquired its identity during that process, and could not be removed as a complete unit without dismantling. On that basis, it was not treated as movable excisable goods and did not attract central excise duty as goods.

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Issues: Whether the conveyor belt system fabricated, assembled, tested and commissioned at site became excisable and dutiable goods, or whether it constituted immovable property and was therefore not liable to central excise duty.

Analysis: The system came into existence only after assembly and commissioning at site, and its identity as a conveyor system was acquired during the course of those operations. The completed installation could not be transported as such to another place and would have to be dismantled into parts before removal. On that basis, the system was treated as part of immovable property rather than as movable excisable goods.

Conclusion: The conveyor belt system was not excisable or dutiable as movable goods and the Revenue's appeal was rejected.

Ratio Decidendi: A system assembled and permanently attached at site, which cannot be removed as a complete unit without dismantling, is immovable property and does not attract central excise duty as goods.

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