Site-fabricated furniture and immovable fittings: excise applies only to movable goods, and demands cannot exceed the notice.

Site-fabricated furniture-like items are excisable only where they retain the character of movable furniture; storage cabinets, counters and similar units remained furniture, while workstations, partitions, wall cladding and other permanently fixed fittings were treated as immovable property and outside excise. Duty demand could not be sustained on items classified under tariff headings not covered by the show cause notice, so such demands were set aside. Cum-duty benefit was accepted, the extended period was upheld because registration had not been obtained, interest remained payable, and penalties were sustained subject to recomputation after redetermination of duty and SSI relief.

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Issues: (i) Whether site-erected furniture-like items, including workstations, storage units, counters, partitions, doors and allied fittings, were excisable as furniture under Chapter 93. (ii) Whether the adjudicating authority could sustain duty demand on items classified under chapters not covered by the show cause notice. (iii) Whether cum-duty benefit, limitation, interest and penalties were sustainable.

Issue (i): Whether site-erected furniture-like items, including workstations, storage units, counters, partitions, doors and allied fittings, were excisable as furniture under Chapter 93.

Analysis: The dispute turned on whether the goods, though fabricated and fixed at site, retained the character of furniture or became immovable property. The conclusion depended on the nature of each item. Items such as storage cabinets, running counters, reception tables and similar units were treated as furniture because they retained the commercial identity of furniture and could be removed. By contrast, workstations erected at site and partitions permanently fastened to the building were treated as immovable property and therefore outside excise. Wall cladding, paneling and similar fixed fittings were also treated as immovable property.

Conclusion: The classification was upheld for movable furniture items, but site-erected workstations and other immovable fittings were held not excisable.

Issue (ii): Whether the adjudicating authority could sustain duty demand on items classified under chapters not covered by the show cause notice.

Analysis: The show cause notice proceeded only on classification of the disputed goods under Chapter 93. Once the authority went beyond that foundation and confirmed duty on certain doors and other items under different tariff headings, the demand travelled beyond the notice. A demand cannot be sustained on a basis not proposed in the notice, even if the authority considers an alternative classification. For items such as pelmets, MDF boxes, boards and similar articles, the duty demand was also rejected on the same jurisdictional ground.

Conclusion: Duty demand on items classified beyond the scope of the show cause notice was set aside in favour of the assessee.

Issue (iii): Whether cum-duty benefit, limitation, interest and penalties were sustainable.

Analysis: The departmental challenge to cum-duty treatment failed, and the benefit was accepted. The failure to obtain registration justified invocation of the extended period. Interest remained payable. Penalty under Section 11AC was sustained, though directed to be limited after giving the benefit of SSI exemption, and penalties under the relevant rules were also upheld, with quantum to be recalculated after redetermination of duty.

Conclusion: Cum-duty treatment was upheld, the extended period and interest were sustained, and penalties were held exigible subject to recalculation.

Final Conclusion: The matter was remitted for fresh quantification on the basis of the Tribunal's findings, while the substantive conclusions on excisability, scope of notice, limitation, interest and penalties were partly affirmed and partly modified.

Ratio Decidendi: Goods fabricated and fixed at site are not excisable if they lose the character of movable goods and become immovable property, and duty cannot be confirmed on a basis beyond the scope of the show cause notice.

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