IMPORTANT POINT
Mono vertical crystallisers are not "goods" within the meaning of Central Excise Act and therefore are not exigible to excise duty.

JUDGMENT

Bharucha, J.-The order of the Customs, Excise & Gold (Control) Appellate Tribunal under appeal confirms the levy of excise duty on mono vertical crystallisers.

2. Mono vertical crystallisers are used in sugar factories. Their function is to exhaust molasses of sugar. A general note placed on the record of the Tribunal by the appellants, who have patented the mono vertical crystalliser, describes its function and manufacturing process. The mono vertical crystalliser is fixed on a solid RCC slab having a load bearing capacity of about 30 tonnes per sq. mt. It is assembled at site in different sections shown by the packing list given to customers with the invoices. This consists of bottom plates, tanks, coils, drive frames, supports, plates, distance places, cutters, cutter supports, tank ribs, distance plate angles, water tanks, coil extension pipes, loose bend angles, coil supports, railing stands, intermediate platforms, drive frame railings and flats, oil trough, wormwheels, shafts, housing, stirrer arms and support channels, pipes floats, heaters, ladders, platforms, etc. The parts aforestated are cleared from the premises of the appellants and the mono vertical crystalliser is assembled and erected at site. The process involves welding and gas cutting. Where the assembly and erection is done by the appellants welding rods, gases and the like are procured from the stores of the customer and the customer sends to the appellants debit notes for their value. A sketch and photograph produced by the appellants before the authorities shows that the mono vertical crystalliser is a tall structure, rather like a tower with a platform at its summit.

3. The appellants were required to show cause why they should not pay excise duty on mono vertical crystallisers cleared from their premises during 1982-83. The Collector, Central Excise, Meerut, confirmed the demand. He held, relying on orders placed by sugar factories with the appellants and the correspondence in that behalf, that the manufacture of a mono vertical crystalliser was complete in all respects at the time of its clearance from the appellants premises; its delivery in knocked down condition was only to facilitate transport. It was clear that the mono vertical crystalliser was known to the trade and capable of being sold and purchased in the market, at the time and place of removal and before erection and commissioning, and should be termed goods . The mono vertical crystalliser had a distinct name and was meant for a definite use. As the finished product was the result of the processes of welding, bending, cutting, drilling, etc. and had a name, character and use different from the raw materials used, the process amounted to manufacture within the meaning of the Central Excises and Salt Act, 1944 (hereinafter referred to as `the Act ). The test of marketability and of being goods was satisfied.

4. The Tribunal, in the appeal filed by the appellants, noted the debit notes aforementioned and found that in the case of one customer there was no debit note. The Tribunal concluded, "Thus in the case of this party complete Sugar Mill Machinery which the appellants describe as mono vertical crystallisers in the invoice left the factory. Besides it is also observed that while in the case of Madurantakam Cooperative Sugar Mills case the appellants collected erection charges of Rs. 40,000/- in some cases erection was left to the customers themselves. This destroys the appellants argument that the crystalliser comes into existence only after erection at site."

5. The principal question to which we must address ourselves is whether mono vertical crystallisers are goods upon which excise duty under the provisions of the Act can be levied.

6. In Union of India and Anr. v. Delhi Cloth and General Mills Co. Ltd. 1, a Constitution Bench considered the application of the provisions of the Act to the hydrogenated oils that are known as vanaspati . `Goods were not defined in the Act. The