Permanently fixed furniture too subject to excise – SC

Brief: – The SC held that central excise duty can be levied on furniture permanently fixed to the walls or ground. It set aside the decision of the Customs, Excise and Service Tax Appellate Tribunal, Bangalore, which took a contrary view. This Mumbai Company was engaged in interior decoration of luxury hotels. It entered into turn-key contracts with its clients and furniture was part of the work contract. When the revenue authorities demanded excise duty, it protested the woodwork was carried out in the premises of the hotels and they were permanent fixtures. They cannot be removed without causing damage to the goods or cannibalization. When the contention was rejected, the firm moved the tribunal, which accepted its argument. The excise commissioner appealed to the SC. It quashed the tribunal’s order.

Citation- The Commissioner of Central Excise Visakhapatnam Versus M/s. Mehta & Co.

Court- SC

REPORT ABLE

IN THE SUPREME COURT OF INDIA

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