Power Driven Pumps. [Chapter 84] - Central Excise - 147/2/87-CX.4

Power Driven Pumps. [Chapter 84] C.B.E. C. Letter No. 147/2/87-CX.4 Ddated 23-9-1987 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Power Driven Pumps. [Chapter 84] Doubts have been raised as to whether S. No. 16 of Notification No. 64/86-CE, dated 10-2-1986 as amended could be said to be covered within the provisions of Central Duties of Excise (Retrospective Exemption) Act, 1986. 2. In the erstwhile Central Excise Tariff, parts of power driven pumps falling under Item 68 and captively consumed in the factory of production in the manufacture of excisable goods were exempt from whole of excise duty in terms of Notification No. 118/75-CE, dated 30-4-1975. In the new Central Excise Tariff in terms of S.No. 16 of the table annexed to Notification No. 64/86-CE, dated 10-2-1986 as amended, only those parts of power driven pumps are exempted from excise duty which are classifiable under heading 84.13 and which are used in the manufacture of power driven pumps primarily designed for handling water. Further, the same parts when used in the manufacture of other pumps are chargeable to excise duty. Besides this, the S.No. 16 of the table annexed to Notification No. 64/86-CE dt. 10.2.86 as amended was inserted vide Notification No. 236/86-CE, dated 3.4.86 with a view of solving certain difficulties relating to Modvat as specified power driven pumps were wholly exempt from excise duty. It has got nothing to do with the restoration of duty rates. 3. Therefore, the Board is of the view that S. No. 16 of the Table annexed to Notification No. 64/86-CE, dated 10-2-1986 as amended, cannot be treated to be covered under the provisions of Central - Duties of Excise (Retorspective Exemption) Act, 1986.