1996 (10) TMI 294 - AT - Central Excise

Summary

Issues:
Classification of prime mover part of monoblock pump under Central Excise Tariff Act, 1985.

Detailed Analysis:

1. Background of the Case:
The judgment involves six appeals filed by the Revenue against two separate Orders-in-Appeal. The appeals concern the classification of prime mover part of monoblock pump under the Central Excise Tariff Act, 1985. The Revenue filed supplementary appeals beyond the limitation period, but as the original appeal was filed on time, the delay was condoned, and all six appeals were heard together.

2. Adjudication by Authorities:
The adjudicating authority classified the prime mover in a monoblock pump as an electric motor under Heading No. 8501 of the Tariff. However, the Collector of Central Excise (Appeals) disagreed and held that the prime mover portion of the monoblock pump was not classifiable under Heading No. 85.01 of the Tariff.

3. Arguments and Submissions:
During the hearing, the Revenue argued that the prime mover in the monoblock pump should be classified as an electric motor under Heading No. 85.01 based on the Boards' instructions applicable to the old Central Excise Tariff. They contended that the rotors and stators used in the monoblock pumps were not electric motors as commonly understood and marketed.

4. Analysis by the Tribunal:
The Tribunal carefully examined the manufacturing process of monoblock pumps, where rotors and stators are utilized as the prime mover. It was noted that while rotors and stators were classified as parts of electric motors under the old Tariff, they did not result in the creation of an electric motor in the monoblock pump. The Ministry's circular clarified that in such cases, the rotors and stators forming component parts of the monoblock pump had to pay duty under the relevant Tariff Item.

5. Legal Precedents and Decisions:
The judgment referred to the Gujarat High Court's decision and a Supreme Court case, emphasizing the classification of parts suitable for use with electric motors. It was highlighted that the prime mover parts in the monoblock pump could not be classified under sub-heading No. 8501.00 if they were not cleared incomplete or unfinished.

6. Conclusion:
After considering all aspects, including the Board's instructions and legal precedents, the Tribunal upheld the Collector of Central Excise (Appeals)'s decision. It was concluded that there was no merit in the Revenue's appeals, and all six appeals were rejected based on the classification of the prime mover part in the monoblock pump under the Central Excise Tariff Act, 1985.