2012 (6) TMI 530

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....Central Excise Tariff Act, 1985. The applicants are manufacturing following items:      (i) Air separation column/unit;       (ii) Expansion engine;       (iii) Liquid oxygen pump;       (iv) Liquid nitrogen pump. 3. The above goods are manufactured and cleared on payment of appropriate duty. The show cause notices were issued to applicant on the ground that the applicants are not paying appropriate duty in respect of the Nitrogen/Oxygen Plants. The adjudicating authority confirmed the demand on the ground that fabrication of nitrogen/oxygen plant amounts to manufacture and is liable to duty. The Revenue relied upon the fact that th....

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....contention however, no finding is given in this regard. In view of the above, the contention of applicant is that the demand is not sustainable. 6. The contention of Revenue is that applicant received the order and payment for supply of the complete plant. Certain parts of the plants are manufactured in the factory and cleared on payment of duty. Other parts are purchased from the market and supplied at site directly and the goods manufactured and purchased are used in the installation of the plant. Therefore, the plant is dutiable since a new commodity has come into existence. The Revenue relied upon the Larger Bench decision of the Tribunal in the case of Mahindra & Mahindra Ltd. vs. CCE, Aurangabad reported in 2005 (190) ELT 301 (Tri-....

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....     (iii) The fixing of the plants to a foundation is meant only to give stability to the plant and keep its operation vibration free.       (iv) The setting up of the plant itself is not intended to be permanent at a given place. The plant can be moved and is indeed moved after the road construction or repair project for which it is set up is completed." In view of the above decisions, the contention of Revenue is that the Nitrogen/Oxygen Plants are dutiable product. 7. The contention of Revenue is also that provisions of Notification no. 67/95-CE are applicable only for intermediate products manufactured within the factory and is not applicable in respect of the bought out items. 8....