2000 (10) TMI 79 - AT - Central Excise

Summary

Issues:
Classification of Love-Joy Coupling as parts of power driven pumps under Notification No. 64/86.

Analysis:
The appeal before the Appellate Tribunal CEGAT, Court No. II, New Delhi revolved around determining whether Love-Joy Coupling should be classified as parts of power driven pumps under Notification No. 64/86. The Collector (Appeals) had rejected the appellant's claim, arguing that Love-Joy Coupling is not a part of power driven pumps but merely serves to couple the pump with an electric motor. The appellant, engaged in manufacturing liquid pumps and power driven pumps, had claimed exemption under Notification No. 64/86 for Love-Joy Couplings used to connect liquid pumps to prime movers like electric motors or diesel pumps.

The appellant contended that the Collector (Appeals) had wrongly distinguished between power driven pumps and power driven pump sets, emphasizing that the notification refers to power driven pumps specifically. They argued that the power driven pump sets mentioned in the Show Cause Notice (SCN) were essentially power driven pumps. Referring to relevant tariff advice and clarifications, the appellant's counsel highlighted that power driven pumps are those driven by an external power source like electric motors or I.C. engines, correctly classified under Chapter heading 84.13. They also pointed out discrepancies in the Assistant Collector's classification of Love-Joy Coupling as part of an electric motor rather than a power driven pump, contrary to the contents of the SCN.

In response, the Senior Departmental Representative reiterated the lower authorities' findings, opposing the appellant's classification of Love-Joy Coupling under Notification No. 64/86. The Tribunal, after considering the arguments, case law, and CBEC clarifications, upheld the appellant's position. Relying on the CBEC's clarification that the principal function of a pump set is that of a pump, the Tribunal concluded that the power driven pump sets manufactured by the appellant should be classified under Chapter heading 84.13, making them eligible for the benefits of Notification No. 64/86. Consequently, the appeal was allowed, and any consequential relief was deemed admissible to the appellant in accordance with the law.