1997 (3) TMI 307 - AT - Central Excise

Summary

Issues: Classification of Power Driven Pumps under Central Excise Tariff

In this appeal, the issue revolves around the classification of Power Driven Pumps manufactured by M/s. Yashwant Iron & Steel Works Ltd. The appellants sought to classify their products under T.I. 68 of the Central Excise Tariff, while the Revenue classified them under T.I. 30A. The dispute arose as the appellants supplied electric motors, base plates, and gear boxes separately to their customers, charging for these items individually. The question was whether the pump sets should be classified under T.I. 30A, affecting their eligibility for a small scale exemption under Notification No. 85/85-C.E. The Asstt. Collector initially classified the pump sets under T.I. 68, but the Collector of Central Excise (Appeals) held that they were correctly classifiable under T.I. 30A due to the inclusion of base plates, gear boxes, and electric motors.

The main contention was whether the base frame, couplings, motors, and gear boxes supplied by the appellants should be considered part of the Power Driven Pumps under T.I. 30A. The Collector of Central Excise (Appeals) determined that the pump sets, even when supplied in a dismantled condition, fell under T.I. 30A as the driving mechanism was an essential component of the power driven pump. The classification under T.I. 30A was upheld, emphasizing that the driving mechanism was integral to the classification, regardless of the assembled or dismantled state of the goods.

The appellants argued that the base frame was not part of the P.D. Pump they manufactured but was an additional arrangement for fitting in gear boxes and motors as per customer requirements. However, the Tribunal agreed with the Collector of Central Excise (Appeals) that the base plates, gear boxes, and electric motors were essential components of the power driven pumps under T.I. 30A. The value of these items had to be considered for determining eligibility for the small scale exemption and the extent of exemption under Notification No. 85/85-C.E.

After a thorough analysis of the manufacturing activities and submissions, the Tribunal concurred with the Collector of Central Excise (Appeals) and rejected the appeal. The classification of the Power Driven Pumps under T.I. 30A was upheld, and the appellants were deemed liable for appropriate central excise duty on the differential amount charged from customers. The decision was made in accordance with the Central Excise Tariff provisions and the interpretation of the relevant entries.