TMI Blog1981 (7) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... accounted for in the Central Excise statutory records. In his written statement dated 12-1-1979 Shri V.N. Dua, Authorised Signatory of the firm, admitted that these Ghee Settling Tanks were fully manufactured and that advice about the completion of the same had been sent to the customer in November, 1978 for the purpose of inspection. Shri Dua, however, stated that certain defects, as pointed out by the customer in the course of inspection of the goods on 28-12-1978, had to be rectified. At the same time Shri Dua could not state whether the defects had been rectified or not and he admitted that they were not maintaining any records for repairs/inspections. He further stated that they had been entering the goods in the R.G. 1 register after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled by them to various customers as per details given below : Period Value Rate of Duty Duty Involved 1.4.75 to 31.3.76 29,95,872.00 1% 29,958.72 1.4.76 to 31.3.77 27,88,254.60 1% 27,882.55 1.4.77 to 17.6.77 1,61,713.50 1% 1,617.14 18.6.77 to 28.2.78 4,02,869.00 2% 8,057.38 1.3.78 to 31.3.78 66,210.00 5% 3,310.50 1.4.78 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a consultant, they give advice to various establishments/factories regarding Dairy Machines Refrigeration Plants etc. This also includes designing of various machines etc. to be set up at the proposed establishments/factories. Accordingly, they charge from their customers by raising a bill. (ii) As a Trader, they supply the goods to their customers, by purchasing them from the market or factories producing them. The goods so purchased, are consigned direct to the customers. Accordingly they raise the bill to their customers. In these bills the duty paid nature of the goods is not mentioned. (iii) As an Erector, they undertake the `Erection Work for Dairy Machines, Refrigeration Plant, Steam Raising Plant and other allied items at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty does not arise under Rule 173PP of the Central Excise Rules, 1944. They were even permitted to clear the goods on an invoice instead of a gate pass and it was not obligatory on their part to maintain R.G. 1 register. They have not committed any offence and duty can be demanded only at the time of removal of goods and not when they are still lying inside the factory premises. 5. It was stated that demanding of duty of ₹ 1,18,538.94 on erection charges under Rule 9(2) was also illegal as there has been no removal of goods under Rule 9(1) and they were only sending their skilled persons at the customer s factory for doing job work for which they are sending them the Bills on which no Central Excise duty was leviable. 6. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is not liable to duty and these cannot be termed within the definition of `goods as given in the Central Excises and Salt Act, 1944 and if at all duty is to be charged, this should be charged from the owner where they had done the job work. 8. I have considered the submissions both written as well as oral and have examined the case records. The party s contention that seized four tanks were not fully manufactured and could not be entered in R.G. 1 is incorrect because they themselves have admitted that they had sent an advice to M/s. National Dairy Development Board on 6-11-1978 that the said tanks were ready for inspection. It is inconceivable that the party would have written to them for inspection in respect of incomplete goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various components to make a new commodity would amount to `manufacture and would attract duty under tariff item 68. It is a fact that the party has undertaken the erection work involving installation and commissioning of equipments out of various components; however, even if it is presumed that a `manufacture has taken place, the question would be whether the end product under job work termed erection, installation, dismantling repositioning, servicing, shifting, removing, replacing, or wherever necessary, cutting, delinking, joining, welding or fabricating etc. would merit to be called `goods . On the question whether `installations would merit to be called `goods the Sale of Goods Act, 1930 defines `goods in the following ter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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