Supreme Court: Immovable Plant Not ‘Goods’, Excise Duty Not Levied on Bought-Out Parts
This Supreme Court judgment clarifies that central excise duty is leviable only on movable “goods.” The final assembled boiler, being an immovable plant, is not excisable. Consequently, the value of bought-out items delivered directly to the site cannot be included in the assessable value for duty computation. The extended limitation period for the show-cause notice was also held inapplicable.
Facts Of The Case:
The appellant, Lipi Boilers Ltd., entered into a contract to design, procure, manufacture, and supply machinery for a steam generating plant, including a 50 TPH boiler. The boiler was manufactured and cleared from the factory in a Completely Knocked Down (CKD) condition upon payment of central excise duty. Certain essential items, such as feed pumps and fans, were purchased duty-...