2001 (2) TMI 348

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....y. In the order impugned in this appeal, the Commissioner has held that it amounts to manufacture and confirmed the demand for duty on the goods. 2. It is the contention of the appellant that it does not manufacture any of the components, when go into the fabrication of the conveyor system. Each of the components is supplied by the different manufacturer and components required for assembly are brought together at the sight of the assembly. The appellant's function is to assemble these components into a conveyor system. The assembly and erection of the system is stage by stage. Each stage is first assembled and fastened to steel structures which are embedded in the floor. It is only after these components are finally put together th....

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....he equipment are erected in a stage by stage manner and only after completion of the entire erection, the conveyor system comes into existence. This averments make it clear that the conveyor system emerges as a culmination of a series of processes. In its circular 25/89, dated 19-4-1989, it explains to its officers that "However, at site, if the piece by piece erection or installation of parts or components results into an immovable property, then no duty would be required to be levied on such property." In its Circular 17/89, dated 21-4-1989 the Board explains "To illustrate, if plates, channels, etc. for water tank are taken to site and first a tank is fabricated at site which is then lifted and placed in position and permanently attached....