9911796707
TMI Blog1996 (8) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... ing under Tariff Item 30 of erstwhile Central Excise Tariff manufactured and captively consumed in the manufacture of power driven pumps. 2. The assessee had filed classification List No. 16/79-80 in respect of Electric Motors falling under Tariff Item 30 of Central Excise Tariff with a remark `Duty on Electric Motor' (used in P.D. Pumps) to be said at the time of clearance of pumps. 3. The Assistant Collector vide his order dated 12-5-1980 held that clearance of electric motors took place when it was taken for captive consumption, hence the assessee should pay duty on the electric motors before these were used for the manufacture of pumps and accordingly approved the classification list. On appeal to Collector (Appeals) by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufactured electric motor ready for sale in the market as they are manufactured only for the purpose of pumps and not for any other use. The assessee has also relied on the judgment of the Tribunal as reported in 1984 (17) E.L.T. 431 (Tribunal) = 1984 ECR. 1989, which is based on the clarification issued by Government of India, that motors are integral parts of power driven pumps. They also rely on the exception Notification No. 57/78, dated 1-3-1978, which exempts this item from levy of duty. 5. The ld. Collector (Appeals) has considered all these pleas and by a detailed and reasoned order upheld the assessee's contentions. 6. We have heard Shri A.T. Usman, ld. JDR and Shri D.G. Karna, ld. Consultant for the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vice President]. - With due respect to learned Judicial Member, my views and orders are as follows : 9. I observe that the respondents had filed a classification list regarding electric motors but wanted to pay duty at the time of clearance of the pump. The Assistant Collector did not allow it holding that duty on the electric motors manufactured by the respondents was required to be paid before they are utilized for manufacture of monoblock pumps, since the electric motors used for captive consumption were in fully manufactured state was not denied by the party. 10. At the first appeal stage, the respondents maintained that duty was payable on motors only at the time of clearance of power driven pump(s) incorporating them but a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 9 and 49, an excisable item which is manufactured in a factory is required to be accounted for before being cleared for captive consumption and if dutiable the duty is also required to be paid at this stage that is before captive consumption unless and until such payment is deferred and the duty is allowed to be collected subsequently by virtue of some legal provision. Thus for instance in the case of Cellulose Spin Yarn and Cotton Yarn in respect of which duty could be collected (later) along with duty on cotton fabrics in terms of Rule 49A. The respondents have not drawn attention to any Rule under which the payment of duty in the case of electric motors captively consumed in the manufacture of power driven pumps could be deferred till ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the A.C. and the one before the Collector (Appeals) were diametrically opposite, the respondents were given time to file the process of manufacture and technical write-up. However, they have not done so. 16. It is well known that the electric motors are of various type and can be manufactured in more than one way. Again, there are more than one type of pumps including those with which fully manufactured motors are coupled within or without the factory (as apparent from the Circular of Collectorate of Baroda) and others in which the electric motor does not come into existence as a distinct commodity and an integrated process results in the manufacture of a single unit incorporating rotors and stators as inseparable parts which are n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to be rejected or in view of the observations and findings of the Vice President as given in Para Nos. 13 to 17, the appeal is required to be accepted. Sd/- Sd/- (S.L. Peeran) (S.K. Bhatnagar) Member (J) Vice President Dated : 25-6-1996 18. [Order per : K.S. Venkataramani, Member (T)]. - Heard Shri Y.R. Kilania, the learned Departmental Representative who submitted that he would support the reasoning for allowing the Departmental appeal as contained in order proposed by the Hon'ble Vice-President. The Respondents are not present but have sent written submissions. They have stated that they had already submitted the Chart of manufacture of electric motor captively used by their letter dated 8-2-1996. They have further subm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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