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2016 (1) TMI 435 - AT - Central ExciseDuty demand - Removal of towers for testing - whether the appellant's are liable to pay duty on the tower manufactured, and send for destructive testing - Held that:- Unless the towers undergo destructive testing they are not saleable to the buyer/Rajasthan Rajya Vidyut Prasaran Nigam Ltd. Thus if not saleable, it only means that the process of manufacture is incomplete and the duty of excise is not leviable on them. Merely because the appellants received the cost for manufacture along with testing charges it cannot be said that the towers are liable to excise duty. As per the contract the manufacturing process is not complete when the goods were removed for testing. After testing the goods no longer exist. They are destroyed and turned into scrap. Appellant clears scrap on payment of duty. Thus, the process of destructive testing being integrally connected with the ultimate production of final product, it cannot be said that appellants have cleared any goods liable to duty. - Impugned order is not sustainable - Decided in favour of assessee.
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