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2009 (8) TMI 78

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..... ice 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 - Dated:- 13-8-2009 - FERDINOI. REBELLO & D.G. KARNIK, JJ. Mr. Prakash Shah with Mr. Jas Sanghvi i/b PDS Legal for the Petitioner. Mr. A.S. Rao with Mr. Rohit Pardeshi for the respondents. [Judgment Per D.G. Karnik, J.]. - By this petition, the petitioner challenges the notice dated 26th June 1990 issued to it to show cause why excise duty should not be levied and action be not taken against it for nonpayment of excise duty for fabrication/manufacture of waste water treatment plant. 2. The petitioner i .....

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..... 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 petition. 3. In the petition, the petitioner has explained in detail the procedure for erection of the waste water treatment plant. According to the petitioner, carbon steel tanks, various platforms, walkways and ladders are fabricated at site by process of rolling, welding, grinding etc. of duty paid steel plates, flats, angles, channels and beams. This fabrication is done at site. Civil work is also done at site and various parts are put together by embedding in the civil work and are affixed to the ground. P .....

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..... ract 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 Excise and SALT Act, 1944 (for short the Act ) defines the word manufacture to include any process incidental or ancillary to the completion of a manufactured product. Any process by which an object becomes a new commercial goods would be included in the definition of manufacture . However, simply collecting together at site the various parts would not amount to manufacture unless an excisable movable product (say a plant) comes into existence by assembly of such parts. In the present case, as the petitioner h .....

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..... 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 question of levying excise duty on it. 7. It is true that normally in a writ jurisdiction, a Writ Court would not ordinarily interfere only on issuance of a show cause notice. However, the matter has been admitted in the year 1991. Eighteen years have passed after the petition was entertained and, in our view, it would not be appropriate at this stage to deny the relief to the petitioner on the ground that the petition is directed against the show cause notice especially when factually there is no dispute that the .....

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