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TMI Blog2024 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... fan regulators and distribution boards that fell under Chapter Sub-Headings No. 8536.90, 8414.20 and 8537.00 of the Central Excise Tariff Act, 1985. The appellants had classified fan regulators under Sub-Heading 8414.20 of the Tariff Act which covers electric fans, on the strength that there is no other use of these items and these are used principally and solely with the electric fans - The issue framed to be determined was whether fan regulators would be classified along with electric fans at the same rate of duty or as parts and accessories attracting higher rate of duty - On facts, the position in that case was that regulators had been sold without the electric fan and as independent, stand-alone products. On that admitted factual basis, the Supreme Court accepted the contention of the Department that fan regulators manufactured by that assessee without any electric fans were only classifiable as a part or accessory of a fan and not as a fan itself. In the present case, undoubtedly, submersible pumps and panel boards are governed by separate entries. Under the Schedules, submersible pumps are taxable @ 10% under entry 26 of part 'C' of the First Schedule and panel board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns being specific that the panel boards were to be supplied along with submersible pumps. 3. There is thus no dispute on the position that the panel boards purchased by the petitioner against Form XVII declarations had accompanied submersible pump sets, both being sold as an integrated unit to its customers. This fact emanates from the order of assessment where, the proposal for determination of total and taxable turnover is set out as follows: It was therefore proposed to determine the total and taxable turnover for the year 2003-04, as detailed below: 1. Sales of 3 HP, 5HP pumps at 4% : Rs. 22,69,943.00 2. Sales of pump sets at 10% : Rs.1,29,14,667.00 3. Sales of Motor at 12% : Rs. 11,66,252.00 4. Sales of iron scrap at 4% : Rs. 16,248.00 5. Turnover liable to tax at 1% u/s 3(4) : Rs.2,04,91,185.00 6. Panel Board purchases against form XVII not admissible difference tax at 12% - 3% = 9% : R s. 29,51,301.00 Taxable turnover proposed under TNGST Act : Rs.3,98,09,596.00 4. The proposal at Serial No.2 above, 'Sales of Pumpsets at 10%' indicates acquiescence of the Assessing Authority that the submersible pumps have been sold as a set, with all components, both internal and ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that the submersible pumps would be rendered unusable without the panel boards has been refuted by the learned Government Advocate to state that the panel boards could be purchased by the agriculturists even separately and it was not mandatory for the petitioner to have supplied them together in order to render the pumpsets complete. This may well be so. 11. However, in the present case, there is a finding of fact by the assessing authority that reveals to us that the goods supplied are integrated sets, comprising both submersible pump and panel board. In such circumstances, where the department has accepted the nature of final product supplied, we find it difficult to accept the stand that the two items must be treated as separate products liable to tax under different rates as stipulated in the schedules. 12. In the case of Northwest Switchgear Ltd1 , the assessee was engaged in the manufacture of switches, fan regulators and distribution boards that fell under Chapter Sub-Headings No. 8536.90, 8414.20 and 8537.00 of the Central Excise Tariff Act, 1985 (in short, Tariff Act'). The appellants had classified fan regulators under Sub-Heading 8414.20 of the Tariff Act which cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... falling under item 1 of the Sixth Schedule] and arrack, shall be at the rate of only three per cent on the turnover relating to such sale: ............... Provided further that any dealer who, after purchasing the goods in respect of which he had furnished any declaration, fails to make use of the goods so purchased for the purpose specified in the declaration but dispose of such goods in any other manner, shall pay the difference of tax payable on the turnover relating to sale of such goods at the rate prescribed and three per cent: 17. The Assessing Authority appears to have invoked the proviso to Section 3(3) of the Act although there is no reference to the proviso in the order of assessment. The officer proceeds on the basis that the petitioner, after purchasing the panel boards on the strength of Form XVII declarations, has failed to make use of the panel boards for the purpose stated in the declarations, but has sold them as independent commodities. We are unable to accept his conclusion in the light of categoric admission in the assessment order to the effect that the submersible pumps have been sold with the panel boards as integrated kits. 18. We extract below the operati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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