TaxTMI 
TaxTMI 
2005 (9) TMI 5
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....le to discharge the duty. 1.2The appellants are manufacturers of various air-conditioning machinery at their factories and clear the same on duty payment. They also undertake erection and commissioning of Air-Condition Plants systems on the basis of indivisible work-contracts which is got executed through others. 1.3 The 'ducting' in a system is a requirement for distributing air either in an air-conditioning Plant or a ventilation system. The treated/filtered essential air is carried by the ducting to desired designated space/premises. The ducts, as they emerge, eventually take shape, are not known or/and bought and sold in the market as a marketable commodity. They cannot be brought and installed and used as such & thereafter mo....
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....facture of "goods" as it is only a case of assembling of manufactured goods into a system. This cannot be compared to a fabrication where a group of machines themselves may be combined to constitute a new machine which has its own identity/marketability and is dutiable (e.g., a paper making machine assembled at site and fixed to the earth only for the purpose of ensuring vibration free movement." This would indicate that the levy under the Central Excise Act was understood to be restricted. The same cannot be extended to ducts, which come into existence by fabrication and take the shape and size unique to the building/plant to be covered under an A.C. system. These ducts normally made from G.I. Sheets are insulated for preserving the tempe....
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....p; We find force in these submissions to conclude that there is no levy of Central Excise Duties such ducts considering the instruction issued by Central Excise Board Vide No. 37B Order No. 58/1/2002-CX dated 15-1-2002 which considered various Supreme Court decision on excisability of plant and machinery erected at site and thereafter stipulate in para 4 (vi) the followings. (a) "Integrated Plants/Machines, as a whole, may or may not be 'goods'. For example Plants for transportation of material (Such as handling Plants) are actually a system or a network of machines. The system comes into being upon assembly of its component. In such a situation there is no manufacture of "goods" as i....