TaxTMI 
TaxTMI 
2016 (7) TMI 799
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....the control of the Ministry of Steel & Mines. The respondents are engaged in Civil, Structural and Construction engineering. The respondents had entered into a Works Contract dated 03/04/1984 with M/S. National Thermal Power Corporation Ltd. (NTPC) for erection of Stage II of the Ramagundam Super Thermal Power Project at Ramagundam. 2.2. The Collector of Central Excise, Hyderabad issued Show-cause notice OR No.30/88 Adjn. dated 17/03/1988 stating that the Noticee had fabricated structures like purlins, monorails, beams, girders, columns, bracings, platforms, cable ends, etc. The show-cause notice proposed to classify the fabricated steel structures used for construction under CHH 7308.90 of the First Schedule to the Central Excise Tariff A....
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....1 (Tri. LB)] to canvass the position that the fabrication work undertaken by M/s. HSWCL / respondent undoubtedly amounts to manufacture and the goods so fabricated were clearly classifiable under the Heading 7308.90. 4. The respondent , M/S. HSWCL entered into a contract with NTPCL for the work of structural steel package part-I for Ramagundam Super Thermal Power Project Stage-ll. According to the term of contract, M/S. HSWCL received structural steel materials (plates, rolled sections) from NTPCL and as per specific drawings fabricated columns, girders, beams, purlins, monorails, gantry, bracings, platform etc. The Department was of view that structural steel amounts to manufacture and are classifiable under Chapter Heading 7308.90 of Cen....
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....te under T I-68, it was incumbent on the department to have accepted exemption of goods manufactured at site, which is not a factory, by virtue of Notification No. 46/81-CE dt. 01/03/1981. It is also seen that the Board vide order No.58/1/2002 CX dt. 15/01/2002 on the subject of excisability of plant & machinery assembled at site has clarified as under:- (5) (i) Turnkey projects like Steel Plant, Power Plants etc. involving supply of large number of components, machinery, equipments, pipes and tubes etc. for their assembly/installation/erection /integration Iinter-connectivity on foundation/civil structures etc. at site will not be considered as excisable goods for imposition of Central Excise Duty. 9. Since the above CBEC Order al....
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....e state before being permanently fixed in the structure like the items mentioned in the parenthesis while illustrating parts of structures. We have hereinabove, while referring to the demand of duty made from the appellants, referred to the nature of the parts of structures which were first fabricated on the ground and thereafter were used in the designed structure which was erected by permanently fixing them in such structures. All these had acquired their identity before they were so permanently fixed and as observed above, they are well known in the market as separate commodities. Their state of being movables, being parts of structures fabricated for the purpose of being used in the erection of a structure, came to an end only aft....