2005 (2) TMI 173

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....Member (T)]. - Briefly the facts are that the appellants are engaged in Hotel business. While constructing the hotel they engaged the services of contractors to make furniture, Aluminium Windows etc. These contractors were supplied with the raw material required and were obliged to work in the premises of the appellant's premises Electricity and other facilities were provided by the appellants to ....

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....was issued asking the appellants to explain why Central Excise duty of Rs. 8,15,282.50 should not be demanded on the Aluminium windows penalties should not be imposed and interest should not be demanded. While calculating the duty liability the department added the value of the glass that is fitted into the window frames. After the appellants replied to this notice the department issued a corrigen....

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....ving said that, we examine the plea of the appellants that the process carried out by them did not amount to manufacture of windows. To appreciate this plea one has to understand the process of manufacture involved in the present case. The original authority dealt with this at some length. According to him the contractor engaged by the appellant, first cuts the aluminium profiles into required siz....

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....me is permanently fixed. What is permanently fixed is not goods as it becomes immovable and immovable goods are not excisable. Had the impugned order demanded duty on the parts of windows it could be sustained? However the impugned order demands duty on the full windows, which have come into existence after they have become immovable goods. The impugned order proceeds on a wrong footing that the a....