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2016 (9) TMI 939

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..... ase the specified parts of irrigation gates which are ultimately installed into immovable structure are not bought and sold. These specific parts were fabricated as intermediate parts to create a final structure.It is found that the facts of the case are similar to the one decided by the Karnataka High Court which was affirmed by the Hon’ble Supreme Court. It is also noted that the Hon’ble Supreme Court in Board of Trustees vs. Collector of Central Excise, A.P. [2007 (8) TMI 350 - SUPREME COURT OF INDIA] held that in order to constitute goods twin tests have to be satisfied, namely, process constituting manufacture and secondly marketability. It is well-settled that goods are manufactured with the object of being sold in the market. If .....

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..... where they are integrated and installed. The case of the Revenue is that the goods which are got fabricated by the appellant from the job workers are liable to Central Excise as parts of gates for irrigation project falling under heading 7308.90. The matter was once decided by the original authority and in appeal the Tribunal vide Final Order dated 07.08.2001 remanded the matter for a fresh decision. The Tribunal directed the original authority to examine whether the activities undertaken by the appellant will amount to manufacture and also applicability of ratio of the decision of Hon ble Karnataka High Court in Thungabhadra Steel Products Ltd. vs. Union of India 1998 (98) ELT 334 (Kar.). The present impugned order was passed on such rema .....

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..... materials and he also submitted that all intermediate parts go into the products and the final structure is emanating; each part is easily identifiable as they are made up of all raw materials and though the final product consisting of all raw materials, which becomes an immovable property, is not liable for duty; the other identifiable part that goes to make the final product is liable to duty and this aspect has not been considered by either the Division Bench of this Court or the Supreme Court. We are unable to agree with this submission. In our opinion, both this Court and the Supreme Court have considered the position of the intermediate parts and also the final product and they have laid down a clear dictum that they would be excisabl .....

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..... imilar to the one decided by the Karnataka High Court which was affirmed by the Hon ble Supreme Court. We also note that the Hon ble Supreme Court in Board of Trustees vs. Collector of Central Excise, A.P. 2007 (216) ELT 513 (S.C.) held that in order to constitute goods twin tests have to be satisfied, namely, process constituting manufacture and secondly marketability. It is well-settled that goods are manufactured with the object of being sold in the market. If the goods are not capable of being sold then the test of marketability is not fulfilled. Further, the burden is on the Department to prove whether there is the process which constitutes manufacture and secondly whether the product is marketable. The Hon ble Supreme Court conclud .....

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