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2009 (8) TMI 108

..... goods and comes into existence only on assembly of parts in the civil work, there is no question of levying excise duty on it.

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. Show cause notice quashed. Appeal allowed. - 326 of 1991 - 13-8-2009 - Ferdino I. Rebello and D.G. Karnik, JJ. [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 a .....

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..... able. 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 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. Civ .....

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..... roved 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 supplied) 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 Excises 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 a .....

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..... stence 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 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 peti .....

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