TaxTMI 
TaxTMI 
1985 (1) TMI 332
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....be liable to Central Excise duty. 2. Shri S.K. Gupta, Advocate for the appellants stated that the appellants are a corporation which is a Public Sector Undertaking and their essential function is to undertake life insurance. Carrying on manufacturing business of any kind, is in no way their function. In the instant case, they had purchased exhaust fans and water lifting pumps from a firm in Kanpur and fitted them in a cabinet and installed them in Raipur office. Shri Gupta submitted that this process of installation of the exhaust fans and lifting pumps cannot make the appellants manufacturers of evaporative type of coolers. They have said that it is well-known that their function is life insurance and not manufacture of coolers. Accordi....
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....Misc. Petition No. 472 of 1976, decided on 24-11-1978 [1980 E.L.T. 600 (All.)] was cited. As per this decision, the central idea underlying Entry 29A is that the dutiable article must be ready assembled unit, which is ordinarily sold or offered for sale. Thus, if a person erects a unit with his own ingenuity that is not liable to duty. 5. Shri Lakshmikumaran learned SDR, has submitted before us that in view of the fact that it is admitted by the Life Insurance Corporation that evaporative type of coolers have been installed by them in their office by separately getting exhaust fans, water pumps etc. and assembling them on payment to a local contractor, it is clear that they were manufacturers of the final goods i.e. coolers. It is pointe....
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....t cannot be said that no manufacture, as envisaged by Section 2(f) of the Central Excises and Salt Act, 1944, had taken place. 7. We have carefully considered the submissions made on both sides. On behalf of the Department, it has been stated that the assembling of Exhaust fans and Tully pumps for installing coolers amounts to manufacture and also that it is not necessary that a manufacturer should be continuously engaged in the business of manufacture for profit and that a manufacturer in terms of Section 2 of the Central Excises and Salt Act includes a person who engages in production or manufacture on his own account. The Department have cited in their favour the decision of CEGAT in the case of Orissa Construction Corporation in whic....
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.... of sale or consumption or even destroyed, it was held by the Hon'ble Allahabad High Court that while this proposition is generally true under the Excise Act, but when an entry in the Schedule specifically refers to and restricts the applicability to duty to goods which are ready assembled units and which are generally offered for sale, the concept of sale is necessarily brought in. We are of the view that it is hardly possible to take a view different from the views expressed in the above decision of the Hon'ble High Court of Allahabad in so far as interpretation of the scope of sub-item (2) of Entry 29A of the Central Excise Tariff is concerned. 8. It may be added that there may be millions of consumers spread along the length and brea....