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TMI Blog2007 (9) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Tariff Act with benefit of Notifications 54/93-C.E. dated 28-2-1993, 46/94-C.E. dated 1-3-1994 and 56/94-C.E. dated 16-3-1995 as the case may be. Under these notifications, power driven pumps which were primarily designed for handling water were exempt from duty. With effect from 27-9-1996 by the tariff description itself such pumps were chargeable to nil rate of duty. They were issued a show cause notice on 3-3-1999 alleging that they have misdeclared the said goods as pumps primarily designed for handling water and suppressed the fact that the said goods were designed for handling liquids other than water namely molasses, milk, tolune, vegetable oils, acetone and other chemicals. The show cause notice referred to the catalo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igned for handling liquids other than water and still the appellants have claimed to have been primarily designed for handling water and the material for construction is the same i.e stainless steel. The vital component like impellers are of stainless steel in all types. Mechanical seals are used in all types of their pumps instead of low cost gland typed seals which are commonly used in pumps meant exclusively for handling water. In common practice, pumps primarily designed for handling water are understood to be pumps made of cast iron or cast steel which are used for agricultural, domestic, household applications. 2. The above show cause notice was adjudicated by the Additional Commissioner, who confirmed the demand observing that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng features between these two models and other models which are set out as under : EMI AL, FM 1 AL Other models Standard Motor Special Motor Mild steel shaft Stainless steel shaft Shaft is coupled on motor with the help of coupling Monoshaft integrated in the motor Does not meet hygienic requirements Meets hygienic requirements Mounted on M.S. Base plate Special stainless steel adjustable legs Primarily designed for handling water Liquids with hygienic requirements It was submitted that the versions are modified with the intention to reduce the cost for handling water. The notifications exempt power driven pumps primarily designed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also capable of handling water and vice versa. There is no condition in the exemption notification that if the pump designed for handling water is made from stainless steel, the same shall not be available. Their main business is to sell stainless steel pump for hygienic application and not power driven pump for water handling. Model AM1 AL and FM1 AL are modified version for water handling, wherein they attempted to reduce the cost by making change in construction of pump material. The ld. Advocate then referred to the various uses of their pump set as set out in the show cause notice and the purchase orders referred to therein. In respect of the use in molasses industries, he referred to the explanation supplied to Kalyani Yeast Ltd. stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use of the pump is for handling water which in some cases may contain acid or phosphate acid, acetone etc. but the use to which the pumps are put is not the criteria prescribed in the exemption notification. As far as catalogue is concerned, the same cannot be made basis for denying the exemption, as it is settled law that classification cannot be made on the basis of claims made in the catalogue as catalogue may claim things which may not exist. 6. On limitation, it was submitted that they have been filing classification lists from time to time stating that the two models of pump are primarily designed for handling water and claiming exemption thereof. The department is supposed to make such enquiries as are deemed fit and once classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured by them were meant for handling liquids which can also handle water but cannot be said to be primarily designed for handling water as in that case it would not be capable of handling liquids which requires hygienic condition. 8. We have considered the submissions made. We find that the exemption is limited to pumps primarily designed for handling water and the exemption notification has also specified the pumps i.e. namely (a) Centrifugal pumps (horizontal or vertical pumps); (b) deep tube-well turbine pumps; (c) submersible pump; and (d) axial flow and mixed flow vertical pumps. We however find that there is no definition of power driven pumps primarily designed for handling water. No specification has been prescribed. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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