9911796707
TMI Blog1980 (4) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... tors are excisable goods under Tariff Item 30 in the 1st Schedule to the Central Excises and Salt Act, 1944. Pump sets are excisable under Tariff Item 30-A. It is the case of the petitioner that in case where excise duty is payable on these two items separately he pays it. 2. On September 29, 1976 the Assistant Collector of Central Excise issued notice to the petitioner calling upon him to pay excise duty which was shortly levied during the period commencing from March 1, 1975 and ending on April 3, 1975. The petitioner replied to that notice. The Assistant Collector of Central Excise thereafter made an order by which he demanded the payment of short levied excise duty from the petitioner. The petitioner challenged that order in an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempts power-driven pumps falling under Item No. 30-A of the First Schedule to the Central Excises and Salt Act, 1944 (l of 1944), and specified in column (2) of the Table annexed hereto from so much of the duty of excise leviable thereon as is in excess of the duty specified in the corresponding entry in column (3) of the said Table." This extract clearly shows that under this notification exemption from payment of a part of the excise duty, otherwise payable on the power-driven pumps under Item 30A, has been given. This part by itself has no application to the excise duty payable on electric motors. There are two provisos to this notification. The first proviso inter alia reads as udder :- "Where the aforesaid power driven pumps on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 2A of the Indian Tariff Act aforesaid, calculated at the rate of 10 per cent ad valorem on such electric motors or motors or stators, as the case may be." (emphasis supplied). 6. The argument which Mr. Vakil has raised is that this notification does not grant exemption to electric motors from the payment of excise duty. That argument is correct. It does not grant exemption from payment of excise duty to electric motors. However, we are not concerned in this case with the payability or otherwise of excise duty on electric motors. The question with which we are concerned is whether while determining the assessable value of a monoblock pumping set of which an electric motor is fitted, the value of such an electric motor should includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, clearly provides that no abatement or deduction could be allowed except in respect of the trade discount and the amount of duty payable at the time of removal of the article chargeable with duty from the factory or other premises aforesaid. It suggests that if duty was payable on excisable article at the time of its removal from the factory, it must be deducted from its assessable value. In other words, assessable value which was made up of manufacturing costs and manufacturing profits could not be inflated by adding to it the excise duty payable thereon at the time of removal from the factory gate. The amended section 4 defines `value' inter alia in the following terms :- "Value in relation to any excisable goods does not include th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded in the assessable value of a power-driven pump of which it forms a part, it can much less be included in a case where it is payable but in respect of which exemption has been granted. That is the reason why we have stated in this judgment that this expression applies both to a case where it is a payable and recoverable and also to a case where it is payable but in respect of which exemption has been granted. It is no body's case that by fitting the electric motor to a pumping set, a new `goods' with a distinct identity and a distinct name is brought into existence. 10. Mr. Vakil has raised a preliminary objection to the maintainability of this petition. He has argued that the petitioner ought to have moved the Central Government again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, under Tariff item 3)A of the First Schedule to the Central Excises and Salt Act, 1944. only those pumps are liable to duty which are power-driven, therefore, unless the electric motors or I C. Engines are attached to the pumps they would not merit classification under Tariff Item 30A. The Gujarat High Court in para 9 of the judgment has admitted that if by application of manufacturing process two articles have been transformed into one single article, then the duty paid on such two articles would not be excluded while determining the value of resultant article. Since in the present case a Power Driven Pump cannot come into existence without attaching an electric motor thus by attaching an electric motor to a pump, a new single article ..... X X X X Extracts X X X X X X X X Extracts X X X X
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