1997 (7) TMI 389 - AT - Central Excise

Summary

Issues: Classification of submersible pump parts under Central Excise Tariff

Detailed Analysis:

1. Classification Dispute: The appeal was filed by M/s. Calama Industries Ltd. against the order-in-appeal dated 13-1-1989 passed by the Collector of Central Excise (Appeals), Bombay. The dispute revolved around the classification of various items of their products under different headings/sub-headings of the Central Excise Tariff.

2. Appellants' Submission: M/s. Calama Industries claimed that they classified the items under Chapter 84 sub-heading 84.13 and sought the benefit of Notification No. 64/86-C.E. They argued that the disputed items were parts of submersible pumps exclusively designed for such use, making them classifiable under Heading No. 84.13 of the Tariff.

3. Revenue's Argument: The Revenue contended that the parts in question were of general use and should be classified accordingly. They specifically argued that the cable guard should be classified under sub-heading No. 85.38 of the Central Excise Tariff.

4. Judgment on Classification: The Tribunal analyzed each disputed item individually. It found that the parts in question, such as body NRV, cone NRV, bearing sleeve, and pump shaft, were exclusively designed for submersible pumps and not general items. Consequently, these parts were classified under sub-heading No. 8413 of the Tariff, which covers pumps for liquids. The Tribunal disagreed with the Collector of Central Excise (Appeals) and held that these items were not covered under the headings assigned in the impugned order.

5. Cable Guard Classification: The Tribunal ruled that the cable guard was rightly classified under Heading No. 84.13 as part of the pumps, rejecting the Revenue's classification under sub-heading No. 7308.49.

6. Exemption Benefit: The Tribunal referred to Notification No. 236/86 and held that the parts of submersible pumps, classified under Heading No. 84.13, were eligible for the exemption provided under Notification No. 64/86-C.E.

7. Final Decision: In conclusion, the Tribunal set aside the impugned order, allowing the appeal filed by M/s. Calama Industries and dismissing the appeal filed by the Revenue. The judgment favored the appellants' classification of the submersible pump parts under Heading No. 84.13 of the Central Excise Tariff, granting them the benefit of the relevant exemption notification.

This detailed analysis highlights the classification dispute, arguments presented by both parties, the Tribunal's reasoning for classification under specific headings, and the final decision regarding the classification of submersible pump parts under the Central Excise Tariff.