1988 (9) TMI 62

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..... ifferent horse-powers for captive consumption used in the manufacture of monoblock pumps. The stators and rotors used in the manufacture of monoblock pumps are, according to the petitioners, nothing but parts of the said pumps. The short controversy between the assessee and the revenue is, whether these stators and rotors constitute parts of electric motors falling within Tariff Item 30D or electric motors falling under Tariff Item 30A. The revenue proceeding on the premise that those stators and rotors would be assessable as electric motors under Item 30A issued show cause notices produced at Annexures "B" and "C" in Special Civil Application No. 4656 of 1986 and Annexures "B" (collectively) in the other two petitions calling upon the peti .....

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..... es not come into existence independently in such instances, the manufacture of rotors and stators cannot be denied. The rotors and stators forming component parts of monoblock pumps will, therefore, have to pay duty under Tariff Item 30A before their removal for the manufacture of monoblock pumps. Thus the trade notice issued by the Collector ran counter to the circular letter of 4th February, 1981. On the basis of the classification list filed by the petitioners, the Assistant Collector of Central Excise passed an order, Annexure "H" in the first petition. After referring to the clarification issued by the Government of India, Ministry of Finance (Department of Revenue) New Delhi, vide their letter dated 4th February, 1981 and the Trade No .....

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..... April, 1988. In view of the above, it is now obvious that the rotors and stators used in the manufacture of monoblock pumps fall within Tariff Item 30D and not 30A. That being so, the impugned show cause notice issued by the concerned revenue officer against the petitioners calling upon them to show cause why rotors and stators should not be assessed to duty under Tariff Item 30A will not survive. Mrs. Mehta, the learned Senior Central Government Standing Counsel is unable to contend otherwise. With effect from 1st March, 1986 electric motors and parts suitable for use solely and principally with electric motors fall under Headings 85.01 and 85.03 respectively of the new Tariff. Heading 85.01 refers to electric motors and generators (exclud .....

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