Concept of “Moveable‟ under Goods & Excisable goods :

The first aspect of goods is that they should be moveable. In Union of India v. Delhi Cloth Mills (1977) ELT J-199 and in South Bihar Sugar Mills v Union of India (1978) ELT J-336, the Supreme Court enunciated the principal that to be called goods, the articles must be such as are capable of being bought and sold in the market. The articles must be something, which can ordinarily come or can be brought to the market to be bought and sold. As opposed to moveable goods, immoveable goods like property cannot be brought to the market to be sold.

Under section 3(36) of the General Clauses Act of 1897, moveable goods mean property of every description except immoveable property.

Section 3(26) of the General Clauses Act, 1897 defines the term immovable property as:

“immoveable property shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth.”

Thus, excise duty cannot be levied on immoveable goods and property. There are several case law on this aspect and they are discussed subsequently in the section ‘Dutiability of Site Activities‘.