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TMI Blog2018 (3) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise, Alwar. 2. Brief facts of the case are that the appellant -assessee is engaged in the manufacture of various types of pipes and irrigation system. The Department acted on an intelligence that the appellant was evading Central Excise duty in the manufacture and clearance of "green houses", visited the factory premises on 11.12.2014 and carried out verification of the record. After scrutiny of the record resumed during the visit, and recording the statements of various personnel including Sh. Vijay Singhvi, Factory Manager and Authorised Signatory and Sh. D. I. Desarda, Sr. Vice President (Taxation), Department issued show cause notice dated 15.11.2016. After the due process of adjudication the impugned order came to be passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory, the goods were cleared under excise invoices, classifying the same under 84249000 as parts of mechanical appliances and claiming the benefit of Notification No. 12/12-CE dated 17.03.2012 (Entry No. 242). This entry grants exemption to parts of mechanical appliances of a kind used in agriculture or horticulture. The rest of the bought out components were received in the depot of the appellant and subsequently despatches under commercial invoices. The bought out goods as well as those components manufactured in the factory were assembled at site into the form of green house which was not liable to payment of duty, being an immovable property. (iii) The department has considered the green houses to be classifiable under "pre-fabricated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e eligible for the cenvat credit on the inputs procured from outside. 5. Ld. AR vehemently justified the impugned order. He argued that the facts of the case are different from what has been submitted by the ld. Counsel representing the appellant. He referred to the statements recorded from Sh. Vijay Singhvi and submitted that he has categorically admitted that what has been supplied by the appellant are green houses in ready for assembly form. The depot where the bought out components are said to have been received is nothing but fictitious and it is on record that all the bought out components have been received in the factory of the appellant and have been cleared alongwith components fabricated in their factory, in the form of complete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceiling as well as wall of the green houses. It so happens that the value of bought out items are much more than that of the goods fabricated within the factory. Before proceeding further we reproduced below the competing tariff headings: 8424 Mechanical appliances (whether or not hand-operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines 8424 10 00 -Fire extinguishers, whether or not charged.......... 8424 20 00 -Spray guns and similar appliances....................... 8424 30 00 -Steam or sand blasting machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsequently, such claim of the appellant is without merit. However, the more significant issue is regarding whether the appellant has cleared green houses in ready to assembly form. 7. The heading 9406 of the Central Excise Tariff covers pre-fabricated buildings. In this connection, Note 4 to Chapter 94 is reproduced below for ready reference: "Note 4 of the Chapter 94 of CETA 1985, provide that- "4. For the purposes of heading 9406, the expression "prefabricated buildings" means buildings which are finished in the factory or put up as elements, presented together, to be assembled on site, such as housing or worksite accommodation, officers, schools, shops, sheds, garages or similar buildings." 8. The HSN Explanatory Notes to 9406 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y some of the components of the green houses has been fabricated in the appellant's factory and cleared to the depot. Hence, other bought out items are received by the appellant in their depots. Finally, it is claimed that all the components are assembled at site where it become immovable property. Hence, it has been submitted that the appellant, at the most should be required to pay excise duty only on the components fabricated within the factory. 11. The investigation undertaken by the Department has established that the facts are different. Sh. V. Singhvi, Factory Manager and A.S. has admitted in his statement that all components required for the green houses are transported to the designated site in ready to assemble conditions. The De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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