2002 (3) TMI 127

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....ial plant on turnkey basis besides having a factory at Kalungal, Orissa, where they manufacture various equipments that they entered into an agreement with Bokaro Steel Plant for undertaking design, engineering, documentation, manufacturing and supplying of a plant and equipment, storage and handling at site, erection, testing, Commissioning, establishment of performance guarantee tests and final handing over of one number VAD installation in Steel Melting Shop II of the BSP, including civil and structural works. He, further, mentioned that the VAD system is a complete plant complex housed in several buildings spread over an area of merely 12,000 Sq meters; that it comprises 21 distinct and separate units each comprising several machines an....

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....earth and the marketability of VAD unit is proved by the agreement entered into between the Appellants and BSP for manufacture and supply. 3. The learned Chartered Accountant, further submitted that no evidence has been cited in the impugned order to prove marketability of the VAD plant; that the marketability of the plant cannot be presumed from the agreement entered into between ESP and the Appellants as the same is for designing, erecting and commissioning of a complete plant on turnkey basis and not for manufacture and supply of VAD system which has been referred to as a product; that further there can be an agreement for a house and building; that the VAD plant is an immovable property which does not fall within the definition of "g....

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....d 15-1-2002 issued under Section 37B of the Central Excise Act in which it has been clarified that Turnkey Projects "involving supply of large number of components, machinery, equipments, pipes and tubes etc. for their assembly/ installation/erection/integration/inter-connectivity on foundations/civil structure etc. at site, will not be considered as excisable goods". Finally, he submitted that the demand of duty is time-barred as there was no deliberate suppression of facts or any intention to evade payment of duty on their part; that they had a bona fide belief that the VAD plant was not liable to duty being immovable; that neither the show cause notice nor the impugned order spell out the specific instance of suppression of facts. 4. ....