Captive-use steel structures for factory sheds are not excisable goods, and fabrication does not amount to manufacture.

Fabricated steel structurals such as columns, trusses, purlins and roofing frames used captively within a factory for erecting sheds were treated as part of immovable structural works rather than distinct excisable goods, so no duty was attracted. The fabrication activities of cutting, drilling, welding and riveting were regarded as intermediate processes only and not as manufacture. The analysis followed the Tribunal's earlier view on captive-use structural fabrications and concluded that the assessee was not liable to excise duty on the steel structures or on the fabrication activity.

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Issues: Whether steel structures such as columns, trusses, purlins and roofing frames fabricated and used captively within the factory premises for erecting sheds were dutiable goods and whether the fabrication activity amounted to manufacture.

Analysis: The appeal was decided by following the Tribunal's earlier view that fabricated steel structurals used in the factory for sheds constitute parts of immovable structural works, do not assume the character of any distinct excisable product, and that cutting, drilling, welding or riveting undertaken for such fabrication are only intermediate processes and do not amount to manufacture.

Conclusion: The steel structures were held not liable to duty and the fabrication activity was held not to amount to manufacture, in favour of the assessee.

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