2009 (8) TMI 78

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..... ;fabrication and erection of structures of various types on contract basis. On 13th September 1988, the petitioner entered into a turn key contract with Bharat Petroleum Corporation Ltd. (for short "BPCL") for fabrication, assembly and erection of waste water treatment plant. The activities involved in the contract were procurement, supply, fabrication, transportation of various components, making of civil construction and erection of waste water treatment plant and commissioning it. By that plant, water polluted with oil, bacteria and chemicals and deficient in oxygen was required to be treated to remove oil, neutralize bacteria and harmful chemicals and supply oxygen to the water and and treat it before it was discharged in the pipeline. .....

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..... lant cannot function as such until it is wholly built including the civil construction. 4. In the affidavit in reply filed by Mr. Sunil Kumar Singh, Deputy Commissioner of Central Excise, the procedure given by the petitioner in the petition for erection and commissioning of the waste water treatment plant is not denied. Learned counsel for the respondents, however, contended that the waste water treatment plant came into existence in an unassembled form as per the drawings and designs approved by BPCL before the same was installed, erected and assembled and embedded in the civil work and, therefore, the excise duty is payable on it. 5. It need not be stated that the excise duty is not payable in respect of an immovable property. The pl .....

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..... er treatment plant does not come into existence unless all the parts are put together and embedded in the civil work. Waste water treatment plant does not become a plant until the process which includes the civil work, is completed. In our view, therefore, no commercial movable property came into existence until the assembling was completed by embedding different parts in the civil works. 6. Learned counsel for the respondents strongly relied upon a decision of the Supreme Court in Narne Tulaman Manufacturers Pvt. Ltd. v. Collector of Central Excise, 1988 (38) ELT 566 (SC), and submitted that the Court has held that assembly of duty paid component of weigh bridge amounts to manufacture when both parts and final products are separately and .....

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