TaxTMI 
TaxTMI 
2003 (1) TMI 446
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....is liable to excise duty. He said that the appellants are engaged in the manufacture and supply of equipment, components and accessories of induction/arc furnace. They enter into contracts with several customers for the supply of these items. Some of the contracts also envisage the appellants undertaking the erection and commissioning of induction furnace at the site of the customer. The dispute is in respect of activity undertaken by the appellants with reference to the erection and commissioning of induction furnace at the site of the Customer. 5. While explaining the activity undertaken by the appellants, he said that the appellants supply some of the components and parts of the induction furnace from their factories situated at various places like Vadodara, Bangalore, Faridabad etc. Certain other parts required by the induction/arc furnaces are procured and sent directly to the site of the customer. At the site, a civil platform is constructed by the customer and separate foundations are made for the various equipment. After the civil equipment is constructed, the furnace frame and structure are placed at the foundation, aligned and grouted. The bottom is then aligned wit....
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....e tank 07. F.G.K. Thermal (P) Ltd. v. CCE, Calcutta-I - 2001 (131) E.L.T. 340 (T) = 2001 (43) RLT 843 Kilns/furnaces 08. Silical Metallurgical Ltd. v. CCE, Cochin 1999 (106) E.L.T. 439 (T) Electrical arc furnace 09. Bharat Gears Ltd. v. CCE, Mumbai - 2001 (132) E.L.T. 294 (T) Industrial furnaces 10. Asea Brown Boveri Ltd. v. CCE, Visakhapatnam - 2002 (143) E.L.T. 87 (T) Turbo Alternator 11. Kirloskar Ferrous Industries Ltd. v. CCE, Belgaum - 2002 (53) RLT 194 D.G. Sets 8.  While justifying the action of the Department, in treating the item as excisable goods, Shri Narasimha Murthy submitted that investigation conducted by the officers in this regard leads to the conclusion that induction furnace is excisable goods, movable and saleable. He said that during investigation a statement of Shri N. Vishwanathan, Manager (After Sale Service) of the appellants was recorded on 12-12-98 and same is relevant and in this context, he drew our attention to Para 9.2(ii) of the show cause notice which is as under : - "9.2(ii) Shri N. Vishwanathan, Manager (After Sales Services) of M/s. ABB, Vadodara, in his statement recorded on 12-12-98 under Section 14 of the said Act,....
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....on of various components, accessories, parts which are required for making/erecting a functional induction furnace. (e) On being asked, how these accessories as well as furnace structures are supported, he deposed that the furnace structure is brought to the foundation and before lowering of the structure, foundation bolt are inserted. Before lowering the structure on the foundation, the furnace is leveled and aligned with reference to the drawing and it is grouted with concrete. All the other equipments are similarly grouted the foundation. (f) On being asked that as to whether any of these equipments or furnace structure's portion is actually not inserted or embedded inside the earth, he stated that nuts and bolts are prefixed to the bottom of the structure while lowering and the lower portion is taken inside the hole of the foundation and the beam through which bolt passes is allowed to rest on the foundation, thereafter, foundation bolt is grouted. In other words, the bolt gets embedded in the concrete which is put up to the foundation i.e top layer of furnace beam and upper layer of foundation touching the beam. Therefore, in order to ensure that there is no gap or vibration....
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....he turbo alternator has to be separated into two components - turbine and the other alternator - but then it would not remain turbo alternator, therefore, the test is incorrectly applied. Though, there is no finding that without fixing to the platform such turbo alternator would not be functional, it is obvious that when without fixing, it does not come into being, it can hardly be functional." He said that ratio of the decision in the case of Sirpur Paper Mills Ltd. is not applicable to the facts of this case since in that case, whole purpose being attaching the machine to concrete a base was to prevent wobbling of the machine, but, in the instant case nuts and bolts were already pre-fixed to the bottom and only it was in order to ensure that there was no gap or vibration by virtue of gap between foundation and beam, the nut is tightened. 10. He said that according to the ruling given by the Supreme Court in the case of Triveni Engineering Ltd., two tests are to be fulfilled. Not only the point raised by the other side as referred to in Para 18 of the said decision, but also the "item must be subject to marketability as it was held in Para 20 of the said decision. He said t....