Water treatment plant not liable for excise duty as immovable property. Tribunal rules in favor of respondents.

The Tribunal ruled in favor of the respondents, holding that the water treatment plant, firmly attached to the ground at the customer's site, is not liable to pay excise duty as it qualifies as immovable property. The Tribunal distinguished previous cases involving marketable commodities, emphasizing that goods attached to the earth and immovable do not meet the criteria for excisability. Therefore, based on the specific design and fixed nature of the plant, the Tribunal rejected the Revenue's appeal, affirming that the water treatment plant is not subject to central excise duty.

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Issues:
Whether the water treatment plant is liable to pay excise duty as immovable property.

Analysis:
The Revenue appealed against the Order-in-Appeal stating that the Water Treatment Plant, being firmly attached to civil construction, is not liable for central excise duty. The Revenue argued that the plant can be shifted without difficulty as only the civil construction needs to be broken. They cited a Supreme Court case where a paper making machine was considered excisable due to being a marketable commodity. However, the Counsel for the respondents contended that the water treatment plant is designed based on specific customer requirements, with interconnected tanks and vessels fixed to the ground, making it immovable. They referred to various Tribunal decisions supporting the immovable nature of such plants.

The Tribunal analyzed the issue of whether the water treatment plant, erected at the customer's site, is excisable. The Revenue admitted that the plant was permanently grounded to the floor by concrete casting. The Tribunal distinguished the Supreme Court case regarding a paper making machine, as the issue here concerned the excisability of the entire plant, not just a machine. Referring to a different Supreme Court case, the Tribunal emphasized that goods attached to the earth and immovable do not satisfy the test of being marketable under the Act. They cited a Tribunal decision declaring Coal Handling Plant and Power Plant as immovable properties, not excisable goods, aligning with the nature of the water treatment plant in question.

Based on the analysis, the Tribunal found no merit in the Revenue's argument that the water treatment plant could be shifted after breaking the civil castings. Citing precedents and legal principles, the Tribunal rejected the appeal, concluding that the water treatment plant, being immovably fixed to the ground, is not liable to pay excise duty.

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