TaxTMI 
TaxTMI 
2017 (12) TMI 283
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....t ORDER Per : Raju This appeal has been filed by M/s. Intech Surface Coating Pvt. Ltd. against confirmation of demand of service tax. 2. Ld. Counsel for the appellant pointed out that they are engaged in the manufacture of Powder Coating Equipment and Spares. The appellants were clearing manufactured goods along with certain bought out items. The bought out items were cleared to site for use i....
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.... customers premises and the invoices shows that the goods are powder coating plant while the appellants are merely clearing powder coating equipment which is used for erection of plant. The Commissioner has examined two invoices one issued by the appellant for the powder coating equipment (No.216 dt. 3.3.2004) and the other issued by Intech Auto Stores And Conveyors Pvt. Ltd. cleared overhead conv....
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....that powder coating plant comes into existence only immoveable property after erection and installation. He argued that the complete powder coating plant cannot be charged the Central Excise duty as it comes into existence as immoveable property. He argued that the Central Excise duty can only by charge on the manufacture goods. He relied on the decision of Hon'ble Apex Court in the case of Commis....
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....The liability to Central Excise duty arises only when there is a manufacturing activity undertaken and in the absence of manufacturing activity the liability of Central Excise does not arise. On a similar issue in the case of Acer India Ltd. (supra) observed as follows: 55. It must be borne in mind that central excise duty cannot be equated with sales tax. They have different connotations and ap....