2005 (10) TMI 164

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....dustan Petroleum Corporation Ltd. (HPCL), Gummalladoddi had placed a purchase order from M/s. ABB for design, supply, erection and commissioning of the Complete Terminal Automation System for Vijayawada and Rajahmundry Terminals. The issue in this appeal is excisability of the 'Terminal Automaton System (TAS)'. The Commissioner of Central Excise held that the 'Terminal Automation System' is excisable and classifiable under Heading 84.71 of the Central Excise Tariff. Hence he demanded duty of Rs. 1,12,75,052/- under proviso to Section 11A(1) of the Central Excise Act, 1944. Equal penalty was imposed under Section 11AC. Interest was demanded under Section 11AB. Further he ordered confiscation of the TAS under Rule 173Q of Central Excise Rules....

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....colour photographs of the system which are also a part of the Paper Book show that the system is immovable and cannot be considered as movable property and the conclusion that it is a computer system is perverse and contrary to facts and evidence. A computer system would not have pipelines and would not be erected or fabricated. (iv)       The evidence tendered during investigation by HPCL on 19-1-2001 which is at pages 49-50 of the Paper Book filed on 11-10-2004 shows that there is a turnkey contract, that the construction of the system by piece-by-piece erection at site and that it was fastened to the earth and was not intended to be removed as a system as whole and it became a permanent erection. (v)&n....

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....bsp;      Quality Steel Tubes (P) Ltd. v. CCE [1995 (75) E.L.T. 17 (S.C.)] (ii)        Triveni Engineering and Industries Ltd. v. CCE [2000 (120) E.L.T. 273 (S.C.)] (iii)       CCE v. Hyderabad Race Club [1996 (88) E.L.T. 633 (S.C.)] (iv)       CCE v. Josts Engineering Co. Ltd. [2002 (146) E.L.T. 29 (S.C.)] (v)        CCE v. Nikhil Equipments Pvt. Ltd. [2004 (165) E.L.T. 487 (S.C.)] (vi)       CCE v. Damodar Ropeways & Constructions Co. (P) Ltd. [2003 (151) E.L.T. 3 (S.C.)] (vii)      Thermax v. CCE [1998 (99) E.L.T. 481 (S.C.)] (viii) &n....

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....l Automation System by the HPCL for their Visakha-Vijayawada Pipeline Project. For the said purpose, M/s. HPCL had imported items manufactured by the appellants in Norway, USA, Israel and Netherlands. The appellant also procured certain items in India. It is seen that the entire system has been specifically designed for M/s. HPCL. Considerable engineering skill is required for assembly of the system. The whole system is computerized. The manner of embedding in earth of the system, storage and delivery of petroleum products by the system, entry and exit of transporting trucks for loading and access to the terminals, loading operations and security control are brought out in the Order-in-Original. The general function of the Terminal Automati....