2005 (8) TMI 435 - AT - Central Excise

Summary

Issues:
1. Eligibility for benefit of Notification No. 38/97-C.E. for Pumps for liquids.
2. Classification of parts of pumps under Chapter Sub-Heading 8413.11.

Eligibility for benefit of Notification No. 38/97-C.E. for Pumps for liquids:
The appeal questioned the eligibility of the assessee for the benefit of Notification No. 38/97-C.E. regarding Pumps for liquids. The impugned order denied this benefit, citing that the Notification did not cover Pumps for liquids. However, it was argued that the Tariff itself imposed a nil rate of duty for the pumps for liquids, rendering the question of granting or denying the benefit irrelevant. The Counsel contended that the parts of the pumps should be classified as Parts of pumps for handling water under CSH 8413.11, which carries a nil rate of duty. The department's view that the items should be classified under different headings was deemed incorrect. The Tribunal held that the Tariff Heading CH 84.13 specifically referred to 'Pumps for Liquids' with a nil rate of duty, and the Commissioner erred in not considering this aspect. The order denying the benefit was set aside.

Classification of parts of pumps under Chapter Sub-Heading 8413.11:
Regarding the classification of parts of pumps, the Commissioner had classified them under various Tariff Headings of Chapter 73 and Chapter 40, which was contested. It was argued that the Parts of Pumps should be classified under SH 84.13. The Tribunal noted that the Deputy Commissioner had previously accepted the classification of the Parts of Synthetic Pumps under SH 84.13, emphasizing that they could not be classified under Chapter 73 or Chapter 40. Consequently, the Commissioner's order on this point was deemed improper. The Tribunal set aside the impugned order, allowing the appeal and pronouncing the operative portion in open court at the conclusion of the hearing.