9911796707
TMI Blog2005 (1) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... es proposing to demand duty on the column and shaft assembly and discharge head assembly on the ground that they are accessories of the power driven pump and hence not eligible for the exemption; that the show cause notices had been confirmed by the Deputy Commissioner by demanding the Central Excise duty and the Commissioier (Appeals) also under the impugned Order had rejected their appeals relying upon the decision of the Hon ble Gujarat High Court in the case of Jyoti Limited v. Union of India, 1979 (4) E.L.T. (J 546) (Guj.). 3. The learned Advocate submitted that a power driven pump is a pump having an inbuilt bowl assembly (impeller and volute assembly) and discharge pipe designed and built integrally as a complete unit called a monoblock pump; that as the monoblock pump is not suspended into sump or tubewell, it does not require column and shaft assembly; that, on the other hand, a power driven vertical turbine pump is a composite machine consisting of bowl assembly, column/shaft assembly and discharge head assembly; that the bowl assembly is submerged deep in the well connected to driving motor at the top of discharge head on top of the well through shaft and the column as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng only of that component or as being that machine which performs the principal function. 4. Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 Chapter 85, then the whole falls to be classified in the heading appropriate to that function. 4. He mentioned that whenever there is a requirement for vertical turbine pump, they invariably clear all the three components since all the three components put together would only function as a vertical turbine pump and absence of any of these would not complete the vertical turbine pump and would not be capable of performing the function of vertical turbine pump; that in terms of Note 3 to Section XVI, where composite machines consisting of two or more machines are used to perform complementary or alternative functions, the composite machine is to be classified under the heading of the machines which performs the principal functions; that undisputedly the bowl assembly performs the princi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly indicate that the specification should be in accordance with the IS 1710:1972 or IS 1710:1989; that thus, the customers also clearly recognise the fact that the vertical turbine pump consists of the three assemblies. He also referred to a letter dated 16-9-03 of Dr. V. Sheshadhari, Professor of Department of Applied Mechanics, IIT, New Delhi wherein it is mentioned that all the three components are essential and this fact is universally accepted and also has been mentioned in IS Specification 1710. Reliance has also been placed on Wealth of India published by Council of Scientific Industrial Research wherein it is mentioned that the drive from the motor is transmitted to the pump by means of a long shaft. He also referred to the book Pumps, Fans and Compressors by V.M. Cherkassky, published by Mir Publishers, Moscow. Finally, the learned Advocate, relied upon the HSN Explanatory Notes under Heading 84.13 and submitted that these Notes show the fact that all the three components put together only comprise of the pumps; that the HSN Explanatory Notes specifically make the connecting rods and the columns to be part of the pump; that the Explanatory Notes under Heading No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es which are in themselves goods include in any other heading of Chapter 84, are in all cases to be classified in their respective headings; that, accordingly, the Tribunal classified the parts and accessories of power driven pumps, such as, warm shaft etc. under their respective headings 84.80 to 84.84 of the Central Excise Tariff and not under heading 84.13. Finally, the learned S.D.R. submitted that neither Note 3 nor Note 4 to Section XVI of the Central Excise Tariff applies in the present matters; that Note 3 speaks of composite machine which is not the impugned power driven pump; that, similarly, Note 4 speaks of combination of machines which also PD pump is not; that the opinion given by Dr. Shedhadhari of ITI, in fact, supports the case of the Department as it clearly mentions, in the said letter, that column assembly and discharge head assembly are essential only for delivering the water. 6.1 We have considered the submissions of both the sides. Heading 84.13 of the Schedule to the Central Excise Tariff Act applied to Pumps for liquids, whether or not fitted with a measuring device; liquid elevators. Power driven pumps primarily designed for handling water under Headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in Jyoti Ltd. (supra) was that all the three assemblies, namely, bowl assembly which houses impellers, column assembly through which water or liquid goes up, and the shaft is passed for moving the impellers and discharge head assembly, are all parts of a power driven pump, whereas according to the petitioner, it is only the bowl assembly which houses impellers that is the pump or that is the power driven pump, the rest, namely, the column assembly and discharge head assembly being merely accessories of the pump. The Hon ble High Court has considered the testimony of Sh. N.W. Lalchandani, who was, at some time, Chairman of ISI Sub-Committee of Vertical Pumps and Member of Horizontal Pumps, Leader of Indian Delegation to I.S.O. Conference for Screw Threads at Vienna. At the time, Sh. Lalchandani gave his evidence before the Assistant Collector in 1976, he was Consultant to Haryana Government for design of largest vertical pump in India. The technical book such as Centrifugal and Axial Flow Pumps by A.J. Stepanoff was also considered by the Hon ble High Court. The Gujarat High Court has held as under : To us it seems that applying both the technical aspect and common parlance aspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the impellers. So far as hydro-electric system is concerned it would be futile to call penstock pipes or reservoir as turbine. A turbine is merely that part which moves under the impact of water when water is under great pressure. In the reverse process of turbine pump - it may be a vertifical turbine or a mixed turbine pump - what happens is that it is the impellers action which converts mechanical energy of the shaft supplied through the electric motor in kinetic energy, and equally it would be futile to say that the column assembly through which water passes up or out, and the discharge head from which the column assembly discharge water, are pumps or are essential parts of a pump. The essential parts of a pump in all such cases like the essential parts of a turbine are the moving parts which convert energy of one kind into another kind of energy, kinetic energy into mechanical energy so far as turbine is concerned, and mechanical energy into kinetic energy of the liquid as far as pump is concerned. Considering the question from another angle, it seems to us from a common sense point of view that if a pump goes out of order for some reason or another and has to be replaced, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
