Karnataka High Court
Tungabhadra Steel Products Ltd. vs Deputy Collector Of Central Excise on 7 November, 1990
Equivalent citations: 2004(163)ELT298(KAR)
ORDER
1. In this writ petition, the petitioner has questioned the legality of the levy of excise duty on seven Electric Overhead Travelling Cranes fabricated by the petitioner for carrying on their work under the Central Excises and Salt Act, 1944 ('the Act' for short).
2. The brief facts of the case are these :- The petitioner M/s. Tungab-hadra Steel Products Limited are carrying on the business of fabrication and erection of Hydraulic Gates, hoists, etc,, required for construction of dams and multipurpose river valley projects. For their own use they fabricate and erect electric overhead travelling cranes, at the concerned work spot. A show cause notice was issued to the petitioner calling upon it to pay excise duty on the value of the seven cranes which were valued at Rs. 53,91,379/-. The excise duty assessed was Rs. 5,39,252.16 Ps. The petitioner furnished reply to the show cause notice stating that these cranes are fabricated at the site at which they were necessary and therefore they could not be regarded as chattel and consequently no excise duty was leviable under the provisions of the Act. This contention was rejected by the Deputy Collector of Central Excise, Belgaum. Aggrieved by the said order, the petitioner has presented this petition.
3. The learned Counsel for the petitioner submitted that under similar circumstances similar levy in respect of the cranes fabricated by the petitioner had been challenged by the petitioner in W.P. No. 23434/1980 and connected cases (Tungabhadra Steel Products Ltd. v. The Collector of Central Excise, Bangalore and Ors.) and the Division Bench of this Court in its decision rendered on 18-11-1988 upheld the contention of the petitioner and quashed the order levying the excise duty. We have gone through the said judgment. The said judgment fully covers this case.
4. For the reasons stated in the said order, we make the following order:
(i) The Writ Petition is allowed. (ii) The impugned order dated 16-3-1987 (Annexure - C) is set aside.