VERY IMPORTANT POINT
Tribunal failed to appreciate that there is a tariff entry which covers structures and parts of structures exigible to excise duty if they are new, identifiable goods that are the result of manufacture or processes and they are marketable. Hence it is necessary to set aside the judgment and order of the Tribunal under challenge and remand the appeals to Tribunal for being heard & disposed of afresh in accordance with what is stated in this order of the Constitution Bench of the Apex Court.

Headnote:Question whether structures and parts of structures are liable to Central Excise Tariff-Excise duty-Tariff item 73.08 covers structures and parts of structures if new, identifiable goods produced as a result of manufacture or process which were marketable-Tribunal failed to consider facts of even of a single of the appeals before it-It proceeded simply on the basis that structures and parts of structures are not exigible to excise duty-Whether proper? (No)-Result-Cases remanded.
Held : It, thus, becomes necessary to set aside the judgment and order of the Tribunal under challenge and remand the appeals to the Tribunal for being heard and disposed of afresh, bearing in mind what we have stated above. All contentions may be raised before the Tribunal by either party. Liberty is given to produce additional evidence. (Para 6)

ORDER

Delay condoned.

2. The leaned Solicitor General appearing for the Department fairly states that the Department does not question the correctness of the judgments in Moti Laminates Pvt. Ltd. & Ors. v. Collector of Central Excise1, and Union of India & Anr. v. Delhi Cloth and General Mills Co. Ltd. & Anr.2, insofar as the issue of marketability is concerned.

3. Tariff Item 73.08 of the Central Excise Tariff covers structures and parts of structures, as therein stated (which are, for convenience, referred to as "structurals").

4. It was for the Tribunal to determine, as a fact, whether the structurals that the Department sought to make exigible to excise duty in the various appeals before it were new, identifiable goods which were produced as a result of manufacture or processes and which were marketable. Depending upon its conclusion on these aspects in each of the appeals before it, it was for the Tribunal to determine whether or not the goods in question in each of these appeals were exigible to excise duty.

5. In the judgment and order of the Tribunal that is under challenge the Tribunal has failed to consider the facts of even a single of the appeals before it. It has proceeded simply upon the basis that structurals are not exigible to excise duty. It has failed to appreciate that there is a tariff entry which makes structurals exigible to excise duty and that they are so exigible, provided that they are new identifiable goods that are the result of manufacture or processes and they are marketable.

6. It, thus, becomes necessary to set aside the judgment and order of the Tribunal under challenge and remand the appeals to the Tribunal for being heard and disposed of afresh, bearing in mind what we have stated above. All contentions may be raised before the Tribunal by either party. Liberty is given to produce additional evidence.

7. The Civil appeals are allowed accordingly.

8. No order as to costs.

(N.K.R.) Appeals allowed accordingly.

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2001 Supreme(SC) 728

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