TMI Blog2005 (7) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... d painting and testing of the carbon seamless shells/cylinders for the purpose of checking the leakages and after reassembly at their premises, the components of MSB would be despatched by them to the customers at their site, where civil work and other fabrication work to erect MSB was carried out. The appellants further submitted that Molecular Sieve Battery is an immovable property which is firmly rooted to the earth by being fixed on a strong platform made of cement concrete. In this regard, the appellants relied on several case laws in support of their claim. I find that MSB is identifiable new products coming into existence warranting levy of Central Excise duty and that Tariff Heading 8421.00 specifically covers the goods. For the purpose of durability on the said item, I place reliance on the judgment of the Supreme Court in Sirpur Paper Mills, case reported in 1998 (97) E.L.T. 3 (Supreme Court). In this judgment, the Apex court held that assembly of paper making machine from bought out items as well as a few parts fabricated at the factory amounted to manufacturer as it was found that the paper making machine could be sold in the market. The court also held that just becaus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dioxide. (b) During the period July 1997 to July 1999, the appellants purchased a duly assembled and fabricated MSB and got the same manufactured on job work basis from independent manufacturers. Under receipt of MSB, the appellants would clean, check and test the entire assembly and refit the same before delivery to the customer the appellants dispatches molecular sieve to the customer s premises for charging the MSB at the time of installation. The Molecular sieve is a chemical, which is purchased by the appellants from the manufacturers in India like M/s. IPCL, Thane, or is imported by them. The Molecular sieve is in the form of pellet supplied in drums. The fabricated case of MSB purchased by the appellants consists of 2 cylinders made of seamless carbon steel pipes. The cylinders have dished ends and have flanges welded for connecting the pipes. The cylinders have led supports at the one end. These two cylinders are fixed to the base plates (platform) with nuts and bolts. The base plate is made of mild steel plates and mild steel angles. The base plate has four holes for grouting the vessels in vertical position when grouted on the foundation. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lifted without damaging foundation or other equipments. (c) The appellants say that one of the components of Oxygen Gas Plant is Molecular Sieve Battery (MSB for short) which is also supplied by the appellants to their customers of Oxygen Gas Plant and therefore, constitute a part of trading activity of the appellants. The appellants say that the MSB consists of the following components. (a) Fabricated case of MSB made out of Mild Steel Seamless pipe (b) Pipe fittings (c) Flanges (d) Platform (e) Molecular sieves (f) Control panel (g) Valve (h) Heating elements (i) Temperature sensor The function of MSB is to purify and dry the air by removing moisture and carbon dioxide. (d) (i) During the period 1989 to 1995, the appellants purchased a duly assembled and fabricated MSB or got the same manufactured on job work basis from independent manufacturers. A few specimen copies of the delivery challans of the manufacturers of MSB in both the cases are hereto annexed and marked as Exhibit A (collectively) (ii) Upon receipt of MSB, the appellants would clean, check and test the entire assembly and refit the same before delivery to the customer. While i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e inter connecting pipes are properly cleaned with CTC flushed with nitrogen. The inter connecting pipes and vessels are then connected to the vessel in the bottom portion. (iii) The molecular sieve (i.e. the chemical) is then charged from the top into the vessels. The balance pipe connections are then completed and proper gasket are fitted into joints to make the joints leak proof. (iv) Once assembly is complete vessel with pipe which are once again tested for leakages through joints with Nitrogen gas and then vessel and the inter connecting pipes are properly insulated with mineral wool and aluminium cladding for proper functioning of the MSB. (v) The inlet and outlet pipes of MSB are connected to the air inlet and outlet pipes. The heater box is connected to MSB and inlet connection of Nitrogen gas pipes are also connected with the air separation unit and the outlet Nitrogen pipe vented to atmosphere. (vi) Thus it is permanently embedded to the earth and becomes immovable. It cannot be lifted without damaging foundation or other equipments. (vii) The Molecular sieve battery cannot function on its own, but can be operational only after connecting wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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