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2009 (8) TMI 78

..... t “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. – Held that - when factually there is no dispute that the waste water treatment plant when totally assembled becomes an immovable property. The very show cause notice also says that plant in an unassembled form was installed and affixed to the civil works. This shows that the plant on erection and installation becomes an immovable property which is not excisable to tax. – SCN quashed. - 326 of 1991 - 13-8-2009 - FE .....

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..... B, 173C, 173F, 173G of the Central Excise Rules. In the notice, it was alleged that the petitioner had fabricated/manufactured the waste water treatment plant in the premises of BPCL valued at Rs.5,32,37,123/without payment of central excise duty thereon. The notice further alleged that the waste water treatment plant fell under chapter heading no.8419.00 on which excise duty was payable. The notice further alleged the plant came into existence in unassembled form as per the drawings and designs approved by the BPCL before the same was installed and assembled to the ground with civil work. According to the notice, the excise duty was payable on the value of the plant excluding the value of the civil work. That notice is impugned in this pet .....

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..... existence in an unassembled form at site and became operational after it was embedded in the civil work. Though the civil work did not attract excise duty, excise duty was payable on the plant in an unassembled form. The relevant wording in the show cause notice in that regard is quoted below: The plant already came into existence in an unerected form as per drawing and designs approved by M/s B.P.C.L. before the same was installed erected and affixed to the ground with civil work. The civil work did not attract duty being immovable property. (Underlining s upplied) In our view, mere bringing of the duty paid parts in an unassembled form at one place, i.e. at the site does not amount to manufacture of a plant. Section 2(f) of the Central Ex .....

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..... it was made. There was no finding of fact recorded that the weigh bridge was an immovable property. In that view, the Supreme Court held that excise duty was payable on weigh bridge. The decision nowhere shows that the weigh bridge was not a movable property. In the present case, as we have held that the waste water treatment plant was an immovable property and came into existence only on assembly of parts in the civil work. In the circumstances, the decision in the case of Narne Tulaman Manufacturers Pvt. Ltd. (supra) is of no assistance to the respondents. In view of the fact that waste water treatment plant is not a separate movable marketable goods and comes into existence only on assembly of parts in the civil work, there is no questi .....

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