TMI Blog2004 (10) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... from the assessee's factory is paid on the appropriate value of the excisable goods as applicable, but erection/installation charges are not included in such assessable value. 5.The major finished excisable goods produced by the appellants and which are involved in this appeal are as follows :- (i) Laboratory Wall Benches, as per Customer's Requirement/ Specification : The Appellants, manufacture above items in various sizes and specifications, as per the requirement of the individual customer, depending upon Laboratory Room dimensions. They are mainly consisting of the following : Structural Components : Such as Pedestals, Cross Brace, Horizontal Channels, Cover Panel, Flexible Frame Assembly, etc. These are manufactured in various lengths and widths so as to fit into the Laboratory Room of the customer and are supplied in component form to customer's site. Under Bench Storage Modules : Such as Storage Modules, Sink Unit Modules of various dimensions in a combination of Shutters, Drawers and Colours. These Modules are rested on Pedestals/Flexible Frame Assemblies. These Modules have tops, which are covered and can also act as Table Tops, if required. Bench Tops ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, Valves, Starters, etc. are bought-outs, which are directly dispatched to the premises of the buyers and thereafter fitted on the Fume Hood. There are certain other items such as Granite Dished Work Surface, Marine Ply, which are also supplied along with the Fume Hood, but under Vendor goods category. The appellants also supply option Vendor items like Fume Hood Base Unit on which Fume Hood Upper Unit will be rested at customer's premises. The appellants procure such Base Unit from an outside party and supply as a Vendor goods. This is an option item and some customers do not opt for these Base Units as they construct Concrete Slabs at their sites and position Fume Hoods on these. Ducts or Ductings are made of HDPE Pipes, PP/FRP Pipe, Galvanised Sheet, etc. as per the customer's requirements. The appellants supply HDPE Pipe, PP/FRP Sheet, Resin, etc. as such procured from the suppliers and the Duct is fabricated at customer's site through an Agency appointed by the appellants. In this case, the appellants, supply the Duct as Vendor Goods. Sometimes customers do not order Ducting from the appellants and they arrange by themselves also. Centrifugal Blower is used in connectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining one set of invoices corresponding to the Excise Invoices issued at the time of clearance and "N" Series Invoices corresponding to Vendors products for bought-out items directly sent to the site of the buyers. (iii) The appellants claim, the same he has not contravened before us, the Laboratory Furniture and Fume Hoods, which are major part in respect of which the present appeals relate were erected at site and become non-transportable goods i.e. immovable, as at the site of buyers Service Lines of Copper, PVC, Stainless Steel etc. running through them are also installed which are thoroughly connected with the said Laboratory Furniture in order to carry various requirements of the Laboratory in terms of Compressed Air, Nitrogen gas, other Gases, Water, fuel-gas as per the requirement of the customers. Different types of Taps or Valves are fixed to control the products in these Service Lines and Control Panels are also installed and connected to the Laboratory Furniture after the goods are erected and the entire system becomes a permanent one for all purposes. Similarly, in case of Fume Hoods, after erection, ducting of various shapes and length along with exhaust fan f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944 and penalties on the Director and authorised signatory. 7.After hearing both sides, it is found - (a) Differential duty has been confirmed by invoking larger period for recovery of Central Excise Duty under the proviso of Section 11A(1) on (i) Erection and commissioning charges collected from the buyers through debit notes and no duty have not been paid on them; (ii) All bought-out items procured from outside and supplied directly to the buyers' site on the grounds that the Granite Tops are produced in the factory of the supplier as per drawings and design supplied by the assessee and directly dispatched. Whereas no such allegation appears in the Show Cause Notice that the said Granite Tops were produced in the factory of the assessee or were obtained from the supplier and brought to the assessee's factory and cleared along with the furniture. There are a variety of Optional Table Tops such as Melamine Laminate Tops, Asbestos Cement Tops, Ceramic Tile Tops, Stainless Steel Tops and Granite Tops and duty is proved to have been paid on supplies of the furniture with Melamine Laminate Tops, Asbestos Cement Tops, Ceramic Tile Tops, or Stainless Ste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem as some customers do not opt for these Base Units as they construct Concrete Slabs at their sites and position Fume Hoods on these slabs. (ii) Fume Hood Chamber is installed at the site of the buyer and connected with different sizes of Ducts, Pipes, Fittings, Valves of HDPE, PP/FPR, Galvanised Sheets, depending upon the requirement of the buyers. Pipes or Ductings, along with various fittings, are connected to carry the Fume at appropriate height of the Building and the Ducting is a very complex configuration and in the Ducting, Blower or Fan is also fitted and such Fume Hood Chamber with Valves, Ductings, Measuring Instruments, etc., and such a system may have a length of 15 to 30 Metres and the whole assembled system cannot remain erected without fixation on the Grounds, Walls, etc. When the Fume Hood Chamber is completed at the site of the buyer, it turns out to be a very long and tall structure and in the form and case, it is not marketable nor such a system ever comes to market for buying and selling. (iii) Much has been canvassed by the Authorities below about the visual observations and inspection of the Product Literature of Fume Hood, whereby a conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e itself exhibits the bona fides of the assessee to contest the invocation of the larger period in the facts of this case. It is well settled that when materials are removed from a factory, batch-wise/section-wise or CKD/SKD condition, which have essential characteristics of finished excisable goods and when Central Excise Duty has been discharged on such goods in the form in which they are removed, re-assembly of the same at the site of buyer will not attract further excise duty as held in the case of - (a) Electronics Corpn. of India Ltd. v. C.C.E., Hyderabad-III [2004 (167) E.L.T. 420 (Tri. - Bang.), (b) Suz-Dent (India) Pvt. Ltd. v. C.C.E., Ahmedabad-III [2004 (165) E.L.T. 364 (Tri. - Mumbai), and (c) C.C.E., Coimbatore v. Servall Engineering Industries [2004 (168) E.L.T. 125 (Tri. - Chennai). Following the same, the duty demand as made in this case on merits, therefore, cannot be assessed. (e) Under Section 4 of the Central Excise Act effected on 1-7-2000, reliance placed based by the ld. Commissioner on the proviso to Section 4(2)(d) of the Central Excise Act for demanding Central Excise Duty on erection and commissioning cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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