9911796707
TMI Blog2006 (10) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondent. [Order per : C.N.B. Nair, Member (T)]. The appellant is a manufacturer, inter alia, of power driven pumps. Part of the produce is mono block pump sets and others are pump sets comprising PD pumps and IC engines. 2. Goods used in the manufacture of certain varieties of power driven pumps primarily designed for water handling are exempt under Notification No. 6/2002 (Sr. No. 236 and Condition No. 58). The appellant availed of this exemption in regard to engines manufactured by it and cleared along with pump sets. Pumps for those power driven pump sets were obtained from M/s. Mahindra Engineering Works. The engines manufactured by the appellant and pumps procured from M/s. Mahindra Engineering Works were packed togeth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commissioner that there was no manufacture. It is being pointed out that the Central Board has specifically clarified in relation to power driven pumps that they are classifiable under Tarrif Item No. 8413 and engine is an integral part of PD pumps (Circular No. 224/58/96-CX dated 26-6-96). The contention is that once the board has clarified that PD pumps is classifiable under a particular heading and engine is integral part of it, it was not open to the Commissioner to take a view that the clarification is only on the issue of classification and is not applicable on the question of whether there is manufacture. 5. We have perused the record and heard both sides at length. Much case law has also been cited by both sides on the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Chapter Heading 84.79 hereby denying the benefit of exemption. 2. The matter has been examined in depth. Board in its F.No. 151/13/92-CX. 4 (Pt.) (Circular No. 11/11/94, dated 2-2-94) has held that elector motors or rotors or stators are components parts P.D. Pumps. Following the same analogy, the prime mover, i.e. I.C. Engine may be treated as an integral part of P.D. Pumps. The board takes note of Note 3 of Section XVI of Central Excise Tariff which states that composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as, if consisting only of that component or as being that mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t treated as the fully manufactured item for the purpose of levy. 8. From the above noted factual situation, we are clear that the packets removed by the appellant were, in fact, power driven pump sets and that by putting together an appropriate pump, an engine and platform the appellant has produced a new item viz. power driven pump and the finding to the contrary is not sustainable. It is well settled that manufacture involves the bringing into existence of a new item with a distinct name, identity, character and use. That a power driven pump has a different and new commercial identity, character and use than the components going into its production is clear from the fact that the pump or engine in itself cannot perform as a power drive ..... X X X X Extracts X X X X X X X X Extracts X X X X
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