Site-based excise exemption and lack of marketability protected construction-site manufactured websol panels from duty.

Websol panels manufactured at a contractually specified construction site and used only in that construction qualified for the site-based exemption under Notification No. 59/90-C.E., because the term "site" was not confined to a narrow physical location. The panels were concrete structures cast for use only at the specified project, had no use elsewhere, and lacked commercial marketability. On that basis, they were not excisable, and the duty demand was correctly dropped.

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Issues: (i) Whether websol panels manufactured at the construction site were entitled to exemption under Notification No. 59/90-C.E. dated 20-3-1990; (ii) Whether the websol panels were marketable and therefore liable to excise duty.

Issue (i): Whether websol panels manufactured at the construction site were entitled to exemption under Notification No. 59/90-C.E. dated 20-3-1990.

Analysis: The notification granted exemption to goods manufactured at the site of construction for use in such construction. The clarification issued by Notification No. 5/98 dated 2-6-1998 showed that the expression "site" was not to be given a restricted meaning and could include the site specified in the contract or agreement. The websol panels were manufactured at the site allotted under the construction contract and were used in the construction work.

Conclusion: The exemption was rightly allowed and the denial of benefit was unsustainable, in favour of the assessee.

Issue (ii): Whether the websol panels were marketable and therefore liable to excise duty.

Analysis: The websol panels were concrete structures cast in moulds from cement, steel and stone aggregates, cured for use only at the specified construction site. They could not be used elsewhere or for any other purpose, and had no commercial marketability.

Conclusion: The websol panels were not marketable and were not excisable, in favour of the assessee.

Final Conclusion: The Revenue's challenge failed because the demand relating to websol panels was correctly dropped, and the impugned order was upheld.

Ratio Decidendi: Goods manufactured at a contractually specified construction site and used only in that construction are eligible for the site-based exemption, and articles lacking marketability are not excisable.

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