IMPORTANT POINT
Furniture as excisable item would mean and include movable items such as desks, tables, chairs required for use or ornamentation in a house or office and would not include something immovable or something which is fixed in a position which can be removed only by cannibalizing.

JUDGMENT

Markandey Katju, J. - These appeals have been filed under Section 35L(b) of the Central Excise Act, 1944 against the impugned order of the Customs Excise and Service Tax Appellate Tribunal (hereinafter referred to as `The Tribunal), South Zone Bench, Bangalore dated 10.5.2005.

2. Heard learned counsel for the parties and perused the record.

3. The appellant is a private limited company which undertakes various activities, which includes civil works, painting, ceiling work, electrical work, laying of vinyl flooring, tables, chairs, sofa sets, erection of immovable items viz., partitions (wooden/glass/aluminium/gypsum board), storages, workstations, laying of wooden flooring, column cladding, skirting, mirror paneling, window sill, wooden steps, doors, huge conference tables and huge reception tables depending on the customers requirements. The customer places a purchase order to the appellants on a turn-key basis for the entire activity. The customer usually gives a bare open floor which has an exterior wall and internal columns to the appellants for undertaking the work.

4. In pursuance of the above said activities, the appellant also manufactures furniture as part of the above mentioned activities.

5. The markings based on the drawings approved by the architect are first made on the floor or the wall, as the case may be, depending on whether the item to be erected is a storage unit, large conference table/reception table, running counter etc. Various materials such as wood and plywood are procured from the open market. Frames of the wood are cut to size and fixed to the wall or floor. The plywood required is cut to size and fixed to the wall using screws and nails. Skeletal boxes are then made and fixed on the wall on marked position. Interior partitions and shelves are then made in the case of storage units, running counters, rear unit etc. Once these activities are completed the whole unit is laminated or veneered which would cover the screws and nails. In other words, after these storage units, kitchen counters or conference tables/reception tables are erected they cannot be removed as such and cannot be moved from one place to another. It cannot be dismantled and removed in complete or semi knocked condition from one place to another. It can only be cannibalized as a result of which it gets reduced to broken pieces of wood, laminates etc.

6. The Central Excise authorities issued various show cause notices to the appellants alleging that the appellants had manufactured and assembled excisable goods i.e. furniture and furniture parts falling under Chapter 9404 in the premises of various customers. In response it was contended by the appellants that activities undertaken by them i.e. erection of storage units, kitchen counters, reception tables/conference tables etc. results in emergence of immovable property and could not be considered as excisable goods.

7. The Commissioner vide his order dated 24.9.2003 held that items like storage units, running counters, large reception tables etc. are classifiable under Chapter 9403 as furniture and liable to excise duty. Aggrieved by the said order the appellants filed an appeal to the Customs, Excise and Service Tax Appellate Tribunal, Bangalore which agreed with the findings of the Commissioner that although these items emerge on a piece by piece fabrication, the commodity is known in the market by name of table, storage counters etc. and as such are classifiable as furniture under Sub-heading 9403 of the Central Excise Tariff as furniture. Aggrieved, the appellants have filed the present appeal.

8. The issue which arises for consideration in these appeals is whether storage cabinets, kitchen counters, running counters, large reception/conference tables etc. are excisable as furniture.

9. Learned counsels for the appellants Shri Laxmikumaran and Shri Madhav Rao submitted that these items are fixtures and not furniture, and hence were not subject to the levy of excise