Site-assembled turbo alternator on an immovable base was not excisable goods without independent marketability.

A turbo alternator assembled at site on a concrete base forming part of immovable property was not treated as a distinct marketable commodity for central excise purposes. The Tribunal applied the Supreme Court test that machinery fixed to an immovable base, which would have to be dismantled into components on removal and lacks independent marketability, does not satisfy the requirements of permanency and excisability. On that reasoning, classification under Heading 85.02 was not sustainable, and the duty demand, confiscation and penalties could not be maintained.

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Issues: Whether the assembly of a turbo alternator on a site-specific concrete base resulted in the emergence of excisable goods classifiable under Heading 85.02, and whether the duty demand, confiscation and penalties could be sustained.

Analysis: The Tribunal followed the Supreme Court's ruling that a turbo alternator assembled at site does not become a distinct marketable commodity merely because its components are fitted together and function as a unit. The decisive factors were that the assembly was carried out on a concrete base forming part of immovable property, that removal would dismantle the unit into its components, and that such installation does not satisfy the test of permanency or marketability required for excisability. The earlier view treating the assembled unit as excisable goods under Heading 85.02 was therefore not sustainable on the facts.

Conclusion: The assembly was not excisable goods, and the duty demand, confiscation and penalties could not be sustained; the assessee's appeals were allowed and the Revenue's appeal was rejected.

Final Conclusion: The impugned order was set aside on the footing that site-assembled turbo alternator machinery fixed to immovable property does not amount to excisable goods for central excise purposes.

Ratio Decidendi: Installation of machinery on an immovable concrete base, where the assembled unit lacks independent marketability as such and would be dismantled into components on removal, does not constitute excisable goods.

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