Classification of ETPs: on-site assembly is taxable only if it yields a distinct marketable good prior to attachment. Dutiability depends on whether an ETP or its parts are goods or part of immovable property. Parts leaving the factory are taxable according to their condition; those embodying the essential character of an ETP are chargeable as ETPs. On-site assembly is taxable if it produces a distinct marketable product capable of sale prior to attachment. If the final article arises only as an immovable structure attached to earth, it is regarded as immovable property and not subject to central excise. Illustration: a tank fabricated off-site and then placed is taxable; a tank constructed piece by piece while attached to earth is not.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Classification of ETPs: on-site assembly is taxable only if it yields a distinct marketable good prior to attachment.
Dutiability depends on whether an ETP or its parts are goods or part of immovable property. Parts leaving the factory are taxable according to their condition; those embodying the essential character of an ETP are chargeable as ETPs. On-site assembly is taxable if it produces a distinct marketable product capable of sale prior to attachment. If the final article arises only as an immovable structure attached to earth, it is regarded as immovable property and not subject to central excise. Illustration: a tank fabricated off-site and then placed is taxable; a tank constructed piece by piece while attached to earth is not.
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