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2018 (6) TMI 863 - CESTAT NEW DELHIManufacture - activity of fabrication of storage tanks of various capacities - Held that:- From the nature of the work in the appellant’s factory, it is evident that the appellant has undertaken the activity of manufacture i.e. activity of converting steel sheets into the form of storage tanks. Storage tank is commodity which is liable for payment of excise duty under CETH 73090090 of the Central Excise Tariff. Consequently, the liability of excise duty on the tanks fabricated by the appellant is established and hence the same is sustained. It is also argued that such storage tanks are embedded to the earth and hence no duty is payable - Held that:- Liability for excise duty is to be determined on the basis of the activity carried out in the appellant’s factory and not on the basis of the use of such products after clearance from the factory. Inasmuch as the storage tanks have arisen in the factory of the appellant, the liability for payment of excise duty gets fastened on the appellant. The arguments regarding the tanks being not marketable is also to be discarded since the tanks are in fact procured by the customer i.e. IOCL/ HPCL even though in the form of job work contract. Appeal dismissed - decided against appellant.
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