2016 (9) TMI 939

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.... against order dated 24.08.2007 of Commissioner of Central Excise, Jaipur-I. The main appellant (M/s Om Metal Infraproject Limited) are engaged in the manufacture and fabrication of Hydel and radial gates liable to Central Excise duty. The main appellant is sending various iron and steel angles etc. for bending, cutting, sizing and further fabrication into parts of gates, to the job workers. After the activities are over the said goods were sent directly to the site where they are integrated and installed. The case of the Revenue is that the goods which are got fabricated by the appellant from the job workers are liable to Central Excise as parts of gates for irrigation project falling under heading 7308.90. The matter was once decided by t....

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.... not useful for any other project or job. These are not offered for sale in the market. The Hon'ble Karnataka High Court examined the issue in detail, analysed various decided cases and made the following observation: "13. As against these submissions made by the learned Counsel for the petitioner, the learned Counsel representing the Department submitted that there is a distinction between the intermediate parts and the final products consisting of all raw materials and he also submitted that all intermediate parts go into the products and the final structure is emanating; each part is easily identifiable as they are made up of all raw materials and though the final product consisting of all raw materials, which becomes an immovable prop....

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....hey are marketable or capable of being marketable. In the present case, the original authority presumed marketability on the basis that even a single buyer will constitute the market. We find in the present case the specified parts of irrigation gates which are ultimately installed into immovable structure are not bought and sold. These specific parts were fabricated as intermediate parts to create a final structure. We find that the facts of the case are similar to the one decided by the Karnataka High Court which was affirmed by the Hon'ble Supreme Court. We also note that the Hon'ble Supreme Court in Board of Trustees vs. Collector of Central Excise, A.P. 2007 (216) ELT 513 (S.C.) held that in order to constitute goods twin tests have to....