Site-fabricated plant component not marketable goods, so no central excise duty on clarifloculator bridges.

Fabrication at site of clarifloculator bridges, made to the plant's design and dimensions and erected as an integral part of a water treatment system, did not amount to manufacture of excisable goods because the result was not a marketable commodity. The tribunal distinguished cases involving assembled machines or goods capable of being marketed, and treated the bridges as only a fabricated component of an immovable plant. Central excise duty was therefore not payable, and the duty demand and penalty were unsustainable, with consequential relief available to the assessee.

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Issues: Whether fabrication at site of clarifloculator bridges forming an integral part of a water treatment plant amounts to manufacture of marketable goods liable to central excise duty.

Analysis: The bridges were specially fabricated to the design and dimensions of the plant, formed part of the water treatment mechanism, and were erected at site as a portion of the plant. The governing principle applied was that fabrication and erection of structural or plant components at site do not amount to manufacture of goods if the result is not a marketable commodity. The decisions relied upon by the Revenue were distinguished because they concerned assembled machines or commodities capable of being marketed, whereas the present item was only a fabricated part of an immovable plant.

Conclusion: The clarifloculator bridges were not excisable goods and no central excise duty was payable on their fabrication.

Final Conclusion: The duty demand and penalty were unsustainable, and the assessee was entitled to consequential relief.

Ratio Decidendi: Fabrication at site of a specially designed component that is only a part of an immovable plant and is not a marketable commodity does not constitute manufacture for excise purposes.

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