TMI Blog2017 (12) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... bility to Central Excise duty arises only when there is a manufacturing activity undertaken and in the absence of manufacturing activity the liability of Central Excise does not arise. Similar issue decided in the case of COMMISSIONER OF CENTRAL EXCISE, PONDICHERRY Versus ACER INDIA LTD. [2004 (9) TMI 106 - SUPREME COURT OF INDIA], where it was held that Excise duty would be leviable only on the goods which answer the definition of excisable goods and satisfy the requirement of Section 3. A machinery provision contained in Section 4 and that too the explanation contained therein by way of definition of transaction value can neither override the charging provision nor by reason thereof a goods which is not excisable would become an excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustomers premises. The impugned order holds that since the place of removal is the customers premises and the invoices shows that the goods are powder coating plant while the appellants are merely clearing powder coating equipment which is used for erection of plant. The Commissioner has examined two invoices one issued by the appellant for the powder coating equipment (No.216 dt. 3.3.2004) and the other issued by Intech Auto Stores And Conveyors Pvt. Ltd. cleared overhead conveyors which have been shown as bought out items. The Commissioner has relied on Rule 2(a) of the Interpreted Rules to hold that the entire said receipt at the customers premises constitute the powder coating plant and since the customers premises is the place of remov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute that the Revenue is seeking to include the cost of bought out items supplied directly to site for the purpose of charging Central Excise duty. It is not in dispute that no manufacturing activity in respect of such items has been done by the appellant. The liability to Central Excise duty arises only when there is a manufacturing activity undertaken and in the absence of manufacturing activity the liability of Central Excise does not arise. On a similar issue in the case of Acer India Ltd. (supra) observed as follows: 55. It must be borne in mind that central excise duty cannot be equated with sales tax. They have different connotations and apply in different situations. Central excise duty is chargeable on the excisable good ..... X X X X Extracts X X X X X X X X Extracts X X X X
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