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TMI Blog1986 (2) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... insisted that he should be allowed to file a large number of additional documents and grounds such as an affidavit by an engineer by the name of Mr. Kundu, the hearing could not be completed and had to be postponed pending a decision on the additional documents. None of the additional documents were necessary nor does the affidavit filed by the engineer give any help in determining the dispute. As a result, much time was wasted on a matter that could have been concluded in one hearing. 2. The dispute was whether a hub with blades called by the manufacturers a blade assembly was an electric fan assessable under Item 33(2). These goods or fans are assembled by M/s. Paharpur Cooling Towers from hubs and blades they purchase in the market; they fix the assembly fan or blade assembly in the cooling tower which they build on contracts with buyers. The fans, when they are removed from M/s. Paharpur Cooling Towers' Factory, have no electric motor or any other kind of driven. The motor power is provided/connected only after they are fixed/installed/mounted at the site of the cooling towers. 3. The manufacturers claim that blade assemblies are not electric fans because they do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the power, in most cases is electric power. There has been no evidence or submission by M/s. Paharpur of any of the disputed fan or blade assemblies, as they call them, being driven by any but electric motor power. Of course, any fan driven by, say, a steam engine or an internal combustion engine would not be an electric fan and would go out of this item. That is all we need to say on this context of the dispute that we have to decide. Nature of the fan, we reproduce partly modified the drawing P. 73 319 Rev. submitted by M/s. Paharpur Cooling Towers :- Diagram 5. M/s. Paharpur argued that there are some customers who have certified that they have used diesel engine driven fans. There is indeed such a customer named Mico Farm Chemicals Ltd. who wrote that as they were experienced in power cut almost throughout the year, they used an engine for their fan of the cooling towers supplied by them (M/s. Paharpur). They also proposed using the star and universal joint as an alternative proposal as they would like to start the engine and fan immediately. We have already discussed that these blade assemblies can be driven by power other than electric power and, therefore, this cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s different forms and is known in all kinds of industries like petroleum fractionation industries, and a host of other industries; they take different procedures. Cooling may also be used for the purpose of refrigeration to preserve and keep perishable goods. In the present cooling system, the water used by the steam turbines is cooled in the towers and in this cooling these fans are an aid. The water is also subjected directly to heat loss in the atmosphere thereby enhancing the cooling. Thereafter, the water is recycled. In other cooling systems a coolant like ammonia gas, carbon dioxide gas, fluorocarbon gas, do the cooling of the stock or subject and they themselves are cooled sometimes by the atmosphere, sometimes by cold water. In all cases, cooling is a well known process in industrial systems and factories. We do not agree that a thermal electric generating station and its cooling system are not an industrial system; no authority has been shown to convince us that they are not such industrial systems. And it follows that the cooling, here achieved by or in the cooling tower, of the water used by the steam turbine performs a necessary office in the industrial system without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat machineries are themselves bought and sold and have regular markets with regular sellers and regular buyers. Commerce in them is spread all over the world and a buyer frequently transports the machinery hundreds or thousands of kilometres to the place where he installs it. The heaviest machineries can and do form articles of merchandise which are bought and sold like any other article or commodity, without any difference at all in their marketability, susceptibility to the laws of demand and supply, seasonal changes and a host of other influences that act on commodities and markets. Like other commodities, there are good machineries and bad machineries; they are equally subject to wear, to pilferage, to breakage, to loss, and they can even, after having been installed in one place, be dismantled and carted away to another place, when they are sold, to find another owner and a new home. We cannot understand why the appellants say that because the machinery and fans are fixed they are immovable property. They are nothing of the kind. 10. Furthermore, these are industrial electric fans and are specifically covered by an item of the Central Excise Tariff. When that is the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntifiable as fans, just like a bicycle or a motorcar in CKD condition is identifiable as a bicycle or a motorcar. The counsel should not mistake appearances for substance. For example, a loose leaf book is not less a book than a bound book, although in appearance a loose leaf book till it is strapped, stapped etc. may not look like a book, but only a sheet of papers. 14. A number of trade notices issued by the Collectorates were submitted by the party in support of their arguments but these contain little or no technical details to enable us to judge for ourselves the basis for what they say. We are not able to accept them. 15. There is a judgment of the Calcutta High Court which the appellants seem to think support their case. In fact, it supports the department's case. In the case of civil rules I19W-73 decided on 21-7-1976. In re : M/s. Suburban Industrial Works who manufactured electric fans and blowers with or without electric device claiming that blowers without any electric device were not liable to excise duty under Item 33 of the Central Excise Schedule, the court came to the conclusion that unless the articles mentioned in sub-item (2) of Item 33 were electri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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