2013 (12) TMI 509

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....l 2009 to February 2010 along with interest and equivalent amount of penalty and confiscation of the plant manufactured and cleared by the appellants 2. Shri Nitin Sanghi Director of M/s Dalal Mckenna Private Ltd. and M/s. Sanghi Oxygen (Bombay) Pvt. Ltd. have also filed appeals for imposition of penalty under Rule 26 of the Central Excise Rules 2002. 3. The brief facts of the case are that the applicants are engaged in the manufacture of excisable goods classifiable under Chapter 84 of the 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....

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....made by the appellant out of this 34 purchase order of the items manufactured by the appellant for the remaining 2, it is the contention of the Ld. Counsel that the appellant supplied only the items manufactured by them and remaining items were supplied by third party directly to the customer at the customer's site. The plant were erected by some other agency. The said plant came into existence a customer's site, s it is permanently attach to earth and it cannot be removed at such. Therefore, it has become immovable property and same is not excisable goods. The Ltd. Counsel relied on the decision of the Hon'ble Supreme Court in the case of Triveni Engineering & Industries Ltd. Vs. Commissioner of Central Excise reported in 2000 (120) ELT 27....

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....tral Excise, Hyderabad reported in 1998 (97) ELT 3 (S.C.) to submit that the assembly of manufactured duty paid parts and bought out parts at site amounts to manufacture and the person carrying on such activity is manufacture and liable to duty. He also relied on the decision of Hon'ble Supreme Court in the case of Hon'ble Supreme Court in the case of Commissioner of Central Excise, Ahmedabad Vs. Solid & Correct Engineering Works reported in 2010 (252) ELT 481. He also submitted that the benefit of Notification No.67/95-C.E. ibid is not applicable to the appellants as same is applicable only for the intermediate product manufactured within the factory and is not applicable in respect of bought out items. 8. Heard both sides. 9. Consid....