Site-erected stainless steel tanks treated as immovable property, outside excise classification under Heading 73.09.

Stainless steel tanks fabricated and erected at site, and embedded to the earth, were treated as immovable property rather than excisable goods. Rule 2(a) of the Interpretative Rules was held inapplicable because it addresses incomplete, unfinished, unassembled or disassembled goods that retain the identity of the finished article, not tanks that come into existence only through site-based erection. The commentary also notes consistency with a Central Board circular distinguishing prefabricated tanks from tanks created only by fixing parts at site, and with prior Tribunal authority treating embedded tanks as non-excisable. Accordingly, such site-erected tanks could not be classified under Heading 73.09 for duty.

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Issues: Whether stainless steel tanks fabricated and erected at site, and embedded to the earth, amounted to excisable goods classifiable under Heading 73.09, and whether Rule 2(a) of the Interpretative Rules could be applied to such site-erected tanks.

Analysis: The order records that the tanks came into existence as immovable property at the site after fabrication and erection piece by piece. On that factual footing, Rule 2(a) was held inapplicable, because the provision addresses incomplete, unfinished, unassembled, or disassembled goods that retain the essential character of the finished article. The decision also noted that the conclusion reached by the Commissioner was inconsistent with the Central Board's Circular No. 17/89, which distinguishes between tanks fabricated first and then positioned, and tanks that come into existence only by fixing the parts at site. Reliance was also placed on prior Tribunal authority treating embedded and erected tanks as non-excisable.

Conclusion: The site-erected stainless steel tanks were not excisable goods and could not be classified for duty under Heading 73.09.

Final Conclusion: The demand was set aside and the appeal was allowed with consequential relief according to law.

Ratio Decidendi: Goods that come into existence only as immovable property by site-based erection and embedding are not excisable, and the interpretative rule for incomplete or unassembled goods does not apply to such property.

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