TMI Blog1981 (7) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... stallation of elevators and escalators in buildings and maintenance thereof for a lump sum contract price The installation of elevators and escalators requires the petitioners to purchase several components in the market. Several parts are also manufactured at the petitioners factory at Bombay. By his adjudication order dated 7-12-1977, the Asstt. Collector of Central Excise, Bombay held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent parts for the purpose of assessment, the other alternative was to arrive at the composite value of the entire product for which these component parts were used from which the installation charges and charges for masonry work etc. which were not related to the manufacture of lifts should be excluded and the assessable value arrived at. 3. S/Shri L.K. Negandhi, S.J. Sorabjee, V.J. Taraporevala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the elevators and escalators do not come into existence until they are fully erected or installed, adjusted, tested and commissioned in a building and that on complete erection and installation the elevators and escalators become a part of immovable property and cannot be described as goods. In support of this they have referred to the affidavit of Shri L.N. Venkatraman, Construction Executive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in case the above two contentions are not found acceptable then they should at least get the benefit of exclusion of post-manufacturing expenses while determining the assessable value." 4. Government find considerable force in the petitioners contention referred to the para 3(i) above that elevators and escalators erected and installed by them become a part of immovable property and hence ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factured and cleared from their respective factory(ies) would be chargeable to duty at the appropriate rates. However, no further duty is chargeable when these component parts are assembled at site to erect or instal and commission the elevators and escalators in buildings because at that stage the elevators and escalators become a part of the immovable property. The revision application is dispos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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