VOLTAS LTD. Vs. CCE

JUDGEMENT

(1.) THE issue in dispute in the above appeal is the excisability of Central Air Conditioning Plants erected by the appellants herein during the period 1996 -1997 to August, 2000. The demand of duty of Rs. 50,69,926/ - has been confirmed by the Adjudicating Authority in the order under challenge by holding that Central Air Conditioning Plants are excisable goods falling under sub -heading 8415.00 and penalty of amount equal to duty has been imposed on the appellants herein under the provisions of Sec. 11AC of the Central Excise Act, 1994. We have heard both sides. We note that in the case of Blue Star Ltd. v. CCE, Jaipur [ : 2002 (143) ELT 391 :, 2002 (103) ECR 744 (T)], the Tribunal has followed the ratio of the Apex Court decision in Triveni Engineering and Industries Ltd. [2000 (120) ELT 273 (S.C.)] which has considered the earlier decision of the Apex Court in the case of Sipur Paper Mills [1998 (97) ELT 3 (S.C.) :, 1998 (74) ECR 1 (SC)] (which has been relied upon by the Commissioner in the present impugned order) in coming to the conclusion the Central Air Conditioning Plants installed, tested and commissioned at site are not liable to duty, as they do not satisfy the test of marketability. The Tribunal has also relied upon the Central Board of Excise & Customs Order No. 58/1/2002 -CX. Dated 15.1.2002 issued in terms of Sec. 37B of the Central Excise Act. Blue Star Ltd. decision supra has been followed in the case of Carrier Aircon Ltd. v. CCE, Calicut [ : 2003 (154) ELT 710 :, 2003 (107) ECR 69 (T)]. The Blue Star Ltd. order has been upheld by the Supreme Court by dismissal of the Revenue's appeal as seen from, 2003 (157) ELT A.36.].

(2.) FOLLOWING the ratio of the Blue Star Ltd. & Carrier Aircon Ltd. Judgments which are applicable on all fours to the facts of the present case, we set aside the impugned order and allow the appeal. As the appeal itself stands disposed of the Misc. application for extension of stay is dismissed as infructuous.