Kone Elevators in Central Excise/Service Tax
CBEC in a Section 37B order No.58/1/2002-CX, dated 15-1-2002, had clarified:
Lifts and escalators.
(a) Though lifts and escalators are specifically mentioned in sub heading 8428.10, those which are installed in buildings and permanently fitted into the civil structure, cannot be considered to be excisable goods.Such lifts and escalators have also been held to be non-excisable by the Govt.of India in the case of Otis Elevators India Co. Ltd. reported in 1981 (8) E.L.T.720 (GOI).Further, this aspect was also a subject matter of C&AG's Audit Para No.7.1(b)/98-99 [DAP No.186] which has since been settled by the C&AG accepting the Board's view that such lifts and escalators are not excisable goods.
(b) There may, however, be instances of fabrication of complete lifts and escalators which are movable in nature as a whole and can be temporarily installed at construction sites or exhibitions for carrying men or material.Such cases alone would be liable to duty under sub-heading 8428.10 of the Central Excise Tariff.
Has the above order become irrelevant after the 2005 three judge bench order of the Supreme Court?
Is it covered under Service Tax?
Will this assume a new position in view of the latest judgement of the Supreme Court?
Perhaps the latest position would be that the activity would be liable to Service Tax and the value of the goods supplied can be deducted.