TMI Blog2000 (8) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... as such it cannot be 'excisable goods' falling within the meaning of Heading 85.02. For these reasons, we are of the view that the Tribunal is not correct in coming to the conclusion that the turbo alternator is excisable goods. We, therefore, set aside the order under appeal and allow these appeals with costs. - 13357-13358 of 1996 - - - Dated:- 8-8-2000 - S.S.M. Quadri and Shivaraj V. Patil, JJ. [Judgment per : S.S.M. Quadri, J.]. - These statutory appeals arise from the common order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short 'the CEGAT') in Appeal Nos. E/1759/95-A and E/5555/92-A dated June 20, 1996. The appellants are the assessees under the Central Excise Act, 1944 (for short, 'the Act'). 2.The facts giving rise to these appeals are not in dispute. The appellants deal in turbo alternators which have two components : (i) steam turbine; and (ii) complete alternator (also called 'Generator'). Of them, the appellants manufacture steam turbine in their factories at Allahabad and Bangalore where excise duty is paid on them under the Act. They purchase duty paid complete alternators which are delivered at the site of the custome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s whether excise duty can be imposed on a Turbo alternator under the Act. 7.Section 3 of the Act which is the charging provision authorises levy and collection of duties of excise on all excisable goods which are produced or manufactured in India at the rates mentioned in the Schedule to the CET Act. To attract exigibility of excise duty, an article must satisfy the twin conditions of being: (i) excisable goods; and (ii) produced or manufactured in India. 8.First, adverting to the second condition - is any process of manufacture involved in bringing into existence a turbo alternator? The process is noted by the CEGAT. At the site, platform is constructed in which pockets are provided. The steam turbine from the assessees' factory and the alternator from other factories are transported to the site. The steam turbine is placed on the platform which works as the foundation and then, after levelling, it is fastened with foundation bolts into the pocket. So also, the alternator is placed and bolted to the steam turbine through a high speed coupling between the steam turbine outer-shaft and alternator shaft and they are aligned properly. After ensuring that there is no movement of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ternator by fixing them on a platform and aligning them. As a result of this activity of the appellants, a new product, turbo alternator, came into existence which has a distinctive name and use different from its components. Indeed, the Tribunal referred to the orders placed for purchase of turbo alternator to point out that a new commodity emerges. On these facts, we have no hesitation in holding that the process involved in fixing steam turbine and alternator and in coupling and aligning them in a specified manner to form a turbo alternator, a new commodity, is nothing but a manufacturing process. 12.Now reverting to the first condition the expression 'excisable goods' is defined in clause (d) of Section 2 of the Act to mean goods specified in the Schedule to the CET Act as being subject to a duty of excise including salt. It is thus clear that the goods which are sought to be subjected to the excise duly must find a place in the Schedule to the CET Act. Impost on a turbo alternator is levied under Entry 85.02 in the said Schedule, which reads as under : "Heading No. Sub-Heading No. Description of Goods. Rate of Duty (1) (2) (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the tube mill and welding head erected and installed by the appellant for the manufacture of tubes and pipes out of duty-paid raw material were assessable to duty under residuary Tariff Item No. 68 of the Schedule, being excisable goods within the meaning of Central Excise Act. While re-stating the test, namely, first the article must be goods and secondly that it should be marketable or capable of being brought to market, it was held that goods which are attached to the earth and thus become immovable did not satisfy the test of being goods within the meaning of the Central Excise Act nor can be said to be capable of being brought to the market for being sold. In that case, it was found that both the tests were not satisfied and, therefore, the tube mill and welding head erected by the appellant were not exigible to excise duty. It was held that erection and installation of a plant could not be held to be excisable goods and if such wide meaning was assigned, it would result in bringing in its ambit structures, erections and installations which would surely not be in consonance with accepted meaning of excisable goods and its exigibility to duty. 17.The question whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs it was not possible to hold that the machinery assembled and erected by the appellant at its factory site was immovable property as something attached to earth like a building or a tree. The test, it was noted, would be whether the paper-making machine could be sold in the market and as the Tribunal had found as a fact that it could be sold, so the machine was held to be not a part of immovable property of the company. 19.It appears that the aforementioned two cases - Mittal Engineering Works (P) Ltd. and Quality Steel Tubes (P) Ltd. (supra), were not referred to in Sirpur Paper Mills Ltd.'s case. Further, in the instant case it is a common ground that a turbo alternator comes into existence only when a steam turbine and alternator with all their accessories are fixed at the site and only then it is known by a name different from the names of its components in the market. The Tribunal recorded the finding that fixing of steam turbine and the alternator is necessitated by the need to make them functionally effective to reduce vibration and to minimise disturbance to the coupling arrangements and other connections with the related equipments. It also noted that removal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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