9911796707
TMI Blog1996 (9) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... mption in respect of these Rotors and Stators under Notification No. 64/86-C.E., dated 10-2- 86 (as amended) on the ground that their Die Cast Rotors and Stators were parts of power driven pumps, which were primarily designed for handling water. The Power Driven Pumps were centrifugal pumps (Horizental). The Revenue had classified these Die Cast Rotors and Stators under Heading No. 85.03, which covered, parts suitable for use solely or principally with the machines of Heading Nos. 85.01 and 85.02 . Heading No. 85.01 covered, Electric motors and generators (excluding generating sets, Electric generator sets and rotary Converters were classifiable under Heading No. 85.02. Initially, the respondents paid excise duty on these Rotors and Stato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -heading 8413.00 as per Rule 2(a) of Interpretation of Rules, in respect of Central Excise Tariff Act, 1985. 2. The matter was heard on 25-9-96 when Shri M. Jayaraman, JDR appeared for the appellants/Revenue. Shri A.P. Hathi, Advocate represented the party. 3. The ld. JDR briefly stated the facts and submitted that the Collector (Appeals) had decided the matter on the basis of the classification of the monoblock pump. Before their use in the monoblock pump, the Die Cast Rotors and Stators came into existence and had to be classified. The rotors and stators are specifically covered in Heading No. 8503.00 and they cannot be taken straight away to the parts of power driven pumps. The ld. JDR also submitted that the order passed by the Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also, they were paying excise duty as parts suitable for use solely or principally with the electric motors. It was on 21-4-86 that they revised their classification and the Asstt. Collector rejected their classification under Heading No. 84.13 and classified them under Heading No. 84.03. 5. The Collector (Appeals) had held that the product monoblock pump could not be treated as parts suitable for use solely or principally with electric motor or electrical generating set. This was not the issue before him. The classification of monoblock pump was not in dispute. The question was whether the rotors and stators before they are used in monoblock pump are to be classified as parts of electric motors or as parts of monoblock pump. Although th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem 30D) before their removal for the manufacture of monoblock pumps . 7. Rotors and stators are marketable commodity and had to be assessed on their own merit. It is the settled position that the goods even if they are used captively they had to pay CED at the appropriate rate before their clearance for captive use. In this case, at the stage of the rotors and stators even if they are specifically produced for power driven pump, their classification under Heading No. 85.03 could not be disputed. 8. As regards Heading No. 84.13, it relates to pumps for liquids, whether or not fitted with a measuring device liquid elevators. The power driven pumps even when they are cleared without motor are classifiable under this heading. 9. The ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not 30(A). That being so, the impugned show cause notices issued by the concerned revenue authorities officer against the petitioners calling upon them to show cause why rotors and stators should not be assessed to duty under Tariff Item 30(A) will not survive. Mrs. Mehta, the ld. Senior Central Government Standing Counsel is unable to contend otherwise. With effect from 1st March, 1986 electric motors and parts suitable for use solely and principally with electric motors fall under Headings 85.01 and 85.03 respectively of the new tariff. Heading No. 85.01 refers to electric motors and generators (excluding generating sets) whereas Heading No. 85.03 refers to parts suitable for use solely and principally with the machines of Heading No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r referred to as inputs) are used for further manufacture of specified goods (hereinafter referred to as finished goods) within the factory of production of inputs and where such inputs and finished goods fall under the same item of the said First Schedule to the said Act, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification. The Appellate Tribunal observed that in terms of the Explanation the clearances of inputs could not be taken into account for calculating the aggregate value of clearances only when the inputs and finished products fall under the same Item of the First Schedule to the Act. It pointed out that while electri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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