Excise on Window and Gate

[Asked by Guest]

Dear sir,

we have got a contract frm a builder for eracting of aluminium work in his supervision and AT HIS PLACE, since the we (manufacturers) are not “independently manufacturing” the aluminum doors, windows, partitions, glazing, formwork, cladding etc. and they will get contract for “fabricatin as per drawing only”.all material will be provided by builder. will it come under the sphere of Service Tax, as it is not covered under the definition of “manufacture” given under the Central Excise Act. And if yes then in which category?

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

Thank u sir. we have not got any concerte answer but we have taken risk on following case law basis.

Mahavir Aluminium Ltd. vs. Collector Of Central Excise on 18 June, 1993 = 1993 (6) TMI 171 - CEGAT, NEW DELHI

 The issue involved in this Appeal, filed by M/s. Mahavir Aluminium Ltd.,is whether they

have manufactured aluminium doors and windows at the basement of the site, and

whether it attracts Excise Duty or not.

 The Appellants manufactures aluminium bars, rods, profiles, pipes and tubes, frames

for doors, windows, thresholds for doors and structures, etc, in their factory at Bhiwadi,

Rajasthan; that their Architectural AluminiumProducts Division (AAP Division), New

Delhi is engaged in execution of work of supply and fixing of aluminium doors and

windows in various States; that AAP's Division, after finalization of the contract with the

Building Owners, prepares design/sizes of the aluminium sections for doors and

windows which are supplied by their Bhiwadi factory on payment of duty and are

received at AAP's Godown at Gurgaon/storage space provided by the building owner at

site; that sub-contractors are engaged for the execution of the work; that the contractors

first install from the department with a view to evade payment of duty.

AI Summary

Manufacture vs service: on-site fabrication with principal-supplied materials determines excise duty or service tax classification.
Whether on-site fabrication and installation of aluminium doors, windows and related works, when all materials are supplied by the builder and execution occurs at the builder's premises under supervision, constitutes manufacture attracting excise duty or instead falls within the service tax domain. Reliance is placed on Mahavir Aluminium Ltd. concerning supply-of-sections from the factory, site storage, subcontracted execution, and whether the on-site operations amount to a taxable manufacture.