Curtain Wall Glazing Constructed on Site Becomes Part of Immovable Property Once Affixed and Cannot Be Treated as Excisable Goods: CESTAT [Read Order]
Considering the curtain wall becomes an inseparable and immovable part of the building once affixed, the CESTAT ruled no excise duty applicable
![Curtain Wall Glazing Constructed on Site Becomes Part of Immovable Property Once Affixed and Cannot Be Treated as Excisable Goods: CESTAT [Read Order]](https://images.taxscan.in/h-upload/2025/09/01/2082867-cestat-new-delhi-curtain-wall-glazing-immovable-property-taxscan.webp "Curtain Wall Glazing Constructed on Site Becomes Part of Immovable Property Once Affixed and Cannot Be Treated as Excisable Goods: CESTAT [Read Order]")
The New Delhi Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that curtain wall glazing constructed on site and permanently affixed becomes immovable property and is not liable to central excise duty. AGV Alfag Ltd. carried out construction of curtain walls and structural glazing for various buildings between September 2007 and December...
The New Delhi Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that curtain wall glazing constructed on site and permanently affixed becomes immovable property and is not liable to central excise duty.
AGV Alfag Ltd. carried out construction of curtain walls and structural glazing for various buildings between September 2007 and December 2010. The work involved fixing aluminium sections to building walls, applying tapes, placing toughened glass, and sealing with structural silicon.
The department had demanded duty on curtain walls, but the Commissioner dropped the demand by following an earlier 2004 Tribunal order in the same company’s case which had already held that curtain walls are not manufactured goods.
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On appeal, the revenue argued that sales tax was paid on curtain walls, showing they were goods, and excise duty should apply.
The two-member bench comprising Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) observed that once the curtain wall is erected, it becomes a permanent and immovable part of the building and cannot be removed or refitted as goods.
The tribunal also observed that sales tax is levied on sale or deemed sale of goods, not on manufacture and excise duty is chargeable only if a new movable product comes into existence.
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The tribunal explained that curtain walls are constructed on site, are too large to be manufactured in a factory, and once affixed, become part of the immovable building, which means no excisable goods are manufactured. The tribunal pointed out that paying sales tax or service tax does not alter this position.
The tribunal upheld the Commissioner’s order and dismissed the revenue’s appeal.
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