AIR 1998 SUPREME COURT 1489 ::1998 AIR SCW 366 ::(1998) 74 ECR 1 ::(1998) 97 ELT 3 ::1998 (1) SCC 400 ::(1997) 7 Scale 594 ::1997 (10) Supreme 402 ::(1997) 10 JT 82 (SC)

Supreme Court Of India

Hon'ble Judge(s): S. C. Sen, K. T. Thomas , JJ

Central Excise and Salt Act (1 of 1944) , S.3— Excise duty - Claim of exemption on ground machinery installed is immovable property attached to earth - Owner installing paper making machine - Tribunal finding that machine was attached to the earth for operational efficiency - Tribunal also finding that machine could be sold by dismantling it and selling its parts - Plea that whatever is embedded in earth must be treated as immovable property - Not basically sound further, just because plant and machinery had to be installed in earth for better functioning it does not automatically become immovable property - Property is liable to excise duty. General Clauses Act (10 of 1897) , S.3(26)— (Para 4 5)