2007 (5) TMI 6

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....brought into existence immovable property or not that is the issue involved in Civil Appeal Nos. 5391-5393 of 2002, 4100 of 2003 and 3447 of 2006. In Civil Appeal Nos. 6533-34 of 2002 the erection related to Membrane Cell Technology and Civil Appeal No. 4156 relates to solvent extraction Plant. Stand of the appellant is that the fabrication of such plants out of  duty paid bought out items amounts to manufacture of a new marketable commodity and therefore excise duty is payable. 3. The CEGAT held that no excise duty is leviable and thus these plants are not subject to excisability. It accepted stand of the respondents that these plants are basically systems comprising of various components and are thus in the nature of systems and a....

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.... of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Sub: Excisability of plant and machinery assembled at site - Regarding In exercise of the power conferred under Section 37B of the Central Excise Act, 1944, the Central Board of Excise and Custom considers it necessary, for the purpose of uniformity in connection with classification of goods erected and installed at site, to issue the following instructions. 2. Attention is invited to Section 37B Order No. 53/2/98-CX, dated 2-4-98 (F. No. 154/4/98-CD. 4) [1998 (100) E.L.T. (T9)] regarding the excisability of plant and machinery assembled at site. 3. A number of Apex Court judgments have been delivered on this issue in the rec....

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.... being assimilated in a structure which would render them as a part of immovable property), excise duty would be chargeable on such goods immediately upon their change of identity and prior to their assimilation in the structure or other immovable property. (c) Where change of identity takes place in the course of construction or erection of a structure which is an immovable property, then there would be no manufacture of "goods" involved and no levy of excise duty. (d) 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 net work of machines. The system comes into being upon assembly of its component. In such a situat....