TaxTMI 
TaxTMI 
2004 (5) TMI 147
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....demand along with penalty has been confirmed against the company for having manufactured and cleared two mild steel/Carbon steel storage tank without payment of duty. On appellant No. 2 penalty has been imposed under Rule 209A being the Managing Director of the Company who facilitated the Company in the evasion of the duty on those storage tanks. 2. The learned Counsel has contended that show cause notice was issued in respect of 12 tanks which were allegedly manufactured and cleared by the appellants without payment of duty, and 10 out of those had been admitted by the adjudicating authority to be not excisable goods. He has also contended that all the tanks were constructed at the fertilizer plant site of M/s. Chambal Fertilizer and Chem....
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....tract for expansion of the fertilizer plant of M/s. Chambal Fertilizer and Chemicals Ltd. for fabrication, erection of 12 mild steel/carbon steel storage tanks. Out of these 12 tanks, 10 were of bigger size while two of smaller size as detailed in the impugned order itself [Para 5(iv)]. All these tanks were fabricated, installed at the site and embedded to the earth permanently by the appellants. The process of fabrication of these tanks at site carried out by them was as under :- "The base plates were fabricated as per drawings and specification supplied by the principal contractor M/s. Tokyo Engineering Corporation, Japan in association with Tokyo Engineering (I) Ltd. These plates were fabricated in circular shape by cutting and welding.....
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.... be made at site and these tanks were to be used for the storage of sweet/raw naphtha, polished water, urea solution etc. This makes the intention of the noticee clear that these tanks were got erected at the site with permanency and not for temporary purposes as has been enumerated in the Board's letter dated 15-1-2002." 6. The Adjudicating Authority has left out two tanks in question which were of the diameter 3.8 Mtr. x height 4.4 Mtr. with capacity of 49.9 Cub. Mtr. each and demanded duty in respect of the same on the ground that these being in smaller in size than the other ten tanks, could be removed, transported and installed anywhere. But the authority has lost sight of the fact that these tanks along with other ten tanks were fabr....