LARSEN AND TOUBRO LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. : Heard forthwith. Parties have no objection for the matter being heard.

(2.) The Commissioner in his order dated 12th December 2008 has taken a view that the Special Cut Naphtha Project was undertaken by L & T as a Turnkey Project and not charging to duty as per Board's Section 37B Order dated 15th January 2002 as is involves supply of large number of components, equipments, pipes and tubes for the assembly/installation/interconnectivity on the foundation/civil structure at site. It is also not movable as such and cannot be marketed by dismantling without substantial damage to its structure. However, the components that have gone into the Project would be dutiable as manufactured goods as per Para 5(i) of the said Section 37B order.

(3.) After having so held in paragraph 19, the Commissioner proceeded to hold that the erection of the fire heater would amount to manufacture and consequently tax to be payable on the same.