AI Drafter 
TaxTMI 
TaxTMI 
1998 (9) TMI 691
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.....G. Sets against the appellants' Quotation No. GIPL/SER/ENOR/86 dated 23.8.86. 1.2. As per the appellants, the Diesel Generating Sets comprise of the following components:-- (a) Diesel Engine; (b) Alternator; (c) Base Frame; and Anchor Bolts; (d) Control Panel; (e) Coupling; (f) Silencer; and (g) Accessories like Batteries, Cables etc. 2. The appellants purchased all the components from different manufacturers on a principal to principal basis. The Diesel Engine and Couplings were purchased from M/s. Kirloskar Cummins Ltd. The Alternators were purchased from M/s. Kirloskar Electric Co. Ltd. The Control Panels were purchased from M/s. Sen & Singh Ltd. The Base Frames and Fuel Tanks were purchased from a dealer of Exide Batteries....
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....authorities is as to whether the clearance of components/parts to the site would amount to manufacture and clearance of a complete D.G. Set or not. Whereas the appellants are contending that unless all the operations as detailed above are carried out, no Diesel Generator Set can be said to have come into existence. Their contention is that since D.G. Set so assembled got only grouted to the earth with all the components and it became an immovable property, it cannot be brought to market for being sold and purchased. 4. The adjudicating authority has not accepted the appellants' stand relying upon the fact that the inspection of D.G. Sets was carried out by M/s. RITES Ltd. in their premises and it is not necessary that the D.G. Sets s....
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....estricted only to load test.. The appellants submitted that this factor establishes it beyond doubt that inspection by way of testing was restricted only to load test of the Engine and not the overall testing of the Diesel Generator Set. The statement of Shri D. Mazumder, Assistant Chief Engineer (Electric). RITES, recorded on 18.8.89 also makes it abundantly clear that the inspection and/or testing of the D. G. Set was restricted only to checking of alternator rated output with resistive load. The appellants have also drawn attention to the Inspection Certificate dated 23.12.87 which is to the effect that- "ONLY ALTERNATOR RATED OUTPUT WITH RESISTIVE LOAD CHECK INDIVIDUALLY AS PER C. E'S LETTERS NO. EL/CON/ S/POH/ MCS/ STORES/PT/V DATE....
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.... Sets against the appellants on the ground that it is not necessary on the part of the manufacturers to manufacture any of the components of the final product. To clear all the purchased components from the factory would amount to clearance of D. G. Sets in a knocked down condition. It has also been observed by the adjudicating authority that merely because the D. G. sets were removed to the site in a completely knocked down condition as the complete assembled sets could not be transported to the site as such, this does not mean that the D. G. sets so transported could not be held or considered as 'goods' for the purpose of levy under Section 2 of the Central Excises and Salt Act, 1944. 8. We find some force in the above reasonin....
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....d the gods is question. The said Question and Answer read as follows:-- Q. 5: As per your Ans. 4. it appears that the inspection was done on the Generating Sets in regard to Rated Generator output at full load with the help of water resistance (Resistive Load). Please state how this inspection was carried out. A. 5: The Diesel Generator set was started. The Alternator output terminals were connected to 3 electrodes dipped in the water of a reservoir, The current was passed through the water which acted as a resistive load. The positioning and depth of the electrodes were adjusted till rated current was passed through the water. Each of the two sets were run in the same way and performance of the diesel engine and alternato....