Globus Stores (P) Ltd. Vs. Commissioner of Central Excise

1. the application is for waiver of deposit of duty of rs. 31.49 lakhs approximately and penalty of rs. 36.49 lakhs. the applicant purchased components of central air-conditioning plant and stored them in the department stores. duty has been demanded and penalty imposed on the ground that by putting together the components the applicant manufactured central air-conditioning plant, without paying the duty payable on that plant. the plant has also been confiscated on payment of a redemption fine of rs. 10 lakhs.2. the contention of the counsel for the applicants is that the plant, as such, is not marketable. it cannot be taken from the department stores to any other place for any other purposes whatsoever as such plant. its components have first to be dismantled before they can be removed from the department stores; in such a case it ceases to be an air-conditioning plant.3. the commissioner says that the plant is not marketable and relies upon section 2(a) of the interpretation rule.4. prima facie the question to be considered is not whether the air-conditioning parts is immovable or movable; on the face of it, it does not appear to be immovable. the question however is whether it is goods i.e. whether the plant can be taken to the market for being sold as a plant. the department stores, we have been told, is spread over four floors. various components of the complete plant would be scattered throughout this area. it would be extremely difficult to say that without disturbing the connection between the various components the plant itself can be removed and refitted elsewhere. in that case, it is not the plant that is removed, but the components of it, which when fitted together form the plant. the case appears to be covered prima facie by the decision of the judgment of the supreme court in triveni engineering & industries ltd. vs. cce 5. accordingly we waive deposit of duty, penalty and redemption fine and stay their recovery.