TaxTMI 
TaxTMI 
1981 (7) TMI 237
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....tling Tanks, each of 1000 litres capacity together valued at Rs. 77,108/- and falling under Tariff Item 68 had not been accounted for in the Central Excise statutory records. In his written statement dated 12-1-1979 Shri V.N. Dua, Authorised Signatory of the firm, admitted that these Ghee Settling Tanks were fully manufactured and that advice about the completion of the same had been sent to the customer in November, 1978 for the purpose of inspection. Shri Dua, however, stated that certain defects, as pointed out by the customer in the course of inspection of the goods on 28-12-1978, had to be rectified. At the same time Shri Dua could not state whether the defects had been rectified or not and he admitted that they were not maintaining an....
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....lso revealed that they had not been paying any Central Excise duty chargeable under Tariff Item 68 on the erection charges billed by them to various customers as per details given below : Period Value Rate of Duty Duty Involved 1.4.75 to 31.3.76 29,95,872.00 1% 29,958.72 1.4.76 to 31.3.77 27,88,254.60 1% 27,882.55 1.4.77 to 17.6.77 1,61,713.50 1% 1,617.14 18.6.77 to 28.2.78 4,02,869.00 2% 8,057.38 1.3.78 to 31.3.78 66,210.00 5% 3,310.50 1.4.78 to 12.1.79 9,52,255.00 5% 47,612.65 73,67,172.10 1,18,538.94 3. A show cause notice was issued to the party under C. No. V(68) 15/12/79/Seiz./293, dated 25-6-1979 asking them to ....
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..... (ii) As a Trader, they supply the goods to their customers, by purchasing them from the market or factories producing them. The goods so purchased, are consigned direct to the customers. Accordingly they raise the bill to their customers. In these bills the duty paid nature of the goods is not mentioned. (iii) As an Erector, they undertake the `Erection Work for Dairy Machines, Refrigeration Plant, Steam Raising Plant and other allied items at the customer's factory. The `Erection work' involves installation and commissioning of equipment and machinery, Dismantling machines, repair job, electrical work; inspection etc. The `Erection work' is always done at the customer's factory since the equipment on which the work has to....
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....mises. 5. It was stated that demanding of duty of Rs. 1,18,538.94 on erection charges under Rule 9(2) was also illegal as there has been no removal of goods under Rule 9(1) and they were only sending their skilled persons at the customer's factory for doing job work for which they are sending them the Bills on which no Central Excise duty was leviable. 6. It was submitted that the demand for 1-4-1975 to 25-12-1978 which was raised on 25-6-1979 was time barred under old Rule 173PP(10) and it can be realised only for 6 months under rule 10(1) of the Central Excise Rules, 1944. They were submitting monthly Returns regularly and also their balance sheet duly certified by the Chartered Accountant, which indicated the total goods ....
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....contention that seized four tanks were not fully manufactured and could not be entered in R.G. 1 is incorrect because they themselves have admitted that they had sent an advice to M/s. National Dairy Development Board on 6-11-1978 that the said tanks were ready for inspection. It is inconceivable that the party would have written to them for inspection in respect of incomplete goods. Inspection is the last stage when the manufacturer after completing the manufacturing job fully, informs the customers that the goods had been manufactured by them and they can inspect them. The fact that some defects were noticed during the course of inspection does not mean that the tanks were not fully manufactured. In fact before sending an advice on 6-11-1....
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....ether the end product under job work termed erection, installation, dismantling repositioning, servicing, shifting, removing, replacing, or wherever necessary, cutting, delinking, joining, welding or fabricating etc. would merit to be called `goods'. On the question whether `installations' would merit to be called `goods' the Sale of Goods Act, 1930 defines `goods' in the following terms :- "Goods means every kind of moveable property other than auctionable claims and money; and includes stocks and shares, growing crops and things attached or forming part of the land which are agreed to be served before sale or under the contract of sale." In the case of plant and machinery assembled and installed at site, they are firmly affixed t....