TMI Blog2002 (2) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... NPL) are engaged in the manufacture of Conveyors; that M/s. A.C.C. Ltd. placed an order for erection and commissioning of 16 Belt Conveyors for material handling at Bilaspur (H.P.); that NPL manufactured the Belt Conveyor and other parts of Conveyors in their factory at Ghaziabad which were cleared on payment of appropriate excise duty; that they procured the other items from other manufacturers and got them supplied directly to the site of A.C.C.; that with the help of these items they fabricated, erected and commissioned the Conveyor System and material handling facilities like gantry with walk-way, railings, structural supports, transfer towers, etc.; that the Conveyor System included execution of civil works which were carried out by A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not marketable and not moveable. Reliance was also placed on the decision in the case of CCE, Chandigarh v. Vardhman Spg. Mills [2001 (132) E.L.T. 663 (T) = 2001 (45) RLT 982] and Fenner India Ltd. v. CCE [2001 (47) RLT 723]. The learned Advocate also submitted that as the Conveyor System had been erected after 16-3-95, they are eligible to avail of exemption under Notification No. 67/95-C.E., dated 16-3-95 as these are capital goods used captively for manufacture of final product which are chargeable to duty. In this regard he relied upon the decision in the case of Triveni Engg. Industries Ltd. v. CCE [2001 (136) E.L.T. 617 (T) = 2000 (36) RLT 619 (T)] wherein it was held that there is no requirement in Notification No. 67/95 that cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contract was for the erection and commissioning of the Belt Conveyor System; that the components, parts, accessories and steel items were further assembled/ fabricated at site by NPL as a result of which a different and distinct product came into existence before it was embedded to the earth; that it has been held by the Supreme Court in the case of Sirpur Paper Mills Ltd. v. CCE. Hyderabad [1998 (97) E.L.T. 3 (S.C.)] that the assembling of paper making machine from bought out items and same fabricated at the site amounts to manufacture. The learned SDR also submitted that it is evident from the contract entered into between the two appellants that sale and purchase of conveyor system have been made, and therefore, it cannot be claimed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied before any item can be held to be exigible to excise duty. The learned Advocate for the Appellant No. 2 has submitted that the impugned Conveyor Systems have been erected at the site of Appellant No. l brick by brick and the complete conveyor system came into existence in an immovable condition. It has also been admitted by the adjudicating authority as it is mentioned in the adjudication order as under :- ............some parts were purchased by M/s. NIPL from the market which were directly supplied by their Delhi office to the factory premises of M/s. ACC and some were supplied from their own factory at Ghaziabad. Thus to complete the manufacture of the conveyor systems, M/s. NIPL have undertaken the fabrication as well as as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is dismantled, only Salvageable parts and waste and scrap would emerge and the conveyor system cannot be obtained. The Revenue has also not adduced any evidence on record that the concrete base was only to make wobble free operation of the conveyor system. The Appellate Tribunal in the case of Fenner India Ltd. v. CCE - 2001 (47) RLT 723, following its earlier decisions, has held that the conveyor system comes into existence as immovable property and hence is not excisable goods. Again the Tribunal in the case of M/s. Fenner India Ltd., Madurai vide Final Order No. 331/200l-B [2001 (133) E.L.T. 455 (T)] held that Conveyor System cannot be transported as complete conveyor system to another place but it has to be dismantled into parts of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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