9911796707
|
Home
Issues: Eligibility of sump pumps for excise duty exemption under Notification 57/78-C.E. dated 1st March, 1978
In the case before the Appellate Tribunal CEGAT, New Delhi, the issue revolved around the eligibility of sump pumps manufactured by M/s. Modi Industries Private Limited for the benefit of excise duty exemption under Notification 57/78-C.E. dated 1st March, 1978. The Assistant Collector and Additional Collector of Central Excise had previously ruled that the pumps were not primarily designed for handling water as they were advertised for various purposes including dewatering of building sites, tunnels, mines, and industrial, agricultural, and marine duties. The Tribunal was tasked with determining whether the pumps met the criteria specified in the notification for duty exemption. The appellant's representative argued that only specific models of submersible pumps, not all, were designed for handling water containing sand, mud, sludge, or ash-laden water. He contended that the pumps were made of special materials to prevent the entry of extraneous matter like mud, gravel, and sand. The representative emphasized that the notification required the pumps to be primarily designed for handling water, not exclusively for water, and that the presence of impurities in water should not disqualify them from the exemption. The respondent, represented by Shri K.K. Jha, supported the previous orders of the adjudicating authorities, which denied the duty exemption based on the pumps' intended use for handling water with impurities. Upon reviewing the brochure provided by the appellant, the Tribunal agreed with the appellant's argument. It was noted that out of the five pump models described in the brochure, only two were specified for handling water with solid particles. The Tribunal clarified that the presence of impurities in water, such as sand or mud, should not disqualify the pumps from the duty exemption as long as they were primarily designed for handling water. The Tribunal distinguished between "primarily designed" and "exclusively designed," emphasizing that most water sources contain impurities, making it reasonable to include pumps designed for handling such water under the notification's purview. Referring to a previous case, the Tribunal established that pumps handling liquid, even with impurities, were eligible for the exemption. Consequently, the Tribunal allowed the appeals, overturning the previous orders and granting consequential relief, if applicable.
|
