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TMI Blog1994 (12) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... of supply of components went beyond the ambit of the Notification. Appeal succeeds and is allowed. The order passed by the Tribunal is set aside. The question of law raised by the appellant is decided by saying that the oil driven pumps sold by the appellant having not been manufactured by it, it was entitled to claim exemption under Notification No. 85/72, dated 17th March, 1972. - 910 of 1987 - - - Dated:- 9-12-1994 - R.M. Sahai and S.B. Majumdar, JJ. [Judgment per : R.M. Sahai, J.]. - Whether oil driven pumps sold by the appellant were exempt under Notification No. 85/72, dated 17-3-1972 or they were assessable to duty under Item 30A of the Central Excise Tariff is the short question that arises for consideration in this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal to take the view against the appellant was that it found that the appellant sent components in the shape of casting which by a little machining and grinding became pumps. Therefore, even though the manufacturing units were independent, yet it did not make any difference in law as the pumps having been manufactured on behalf of the appellant, it was not entitled to exemption. The Tribunal further held that if the claim of the appellant that it had only supplied the raw material was found to be correct, probably there would have been no difficulty in accepting its claim but from the material it transpired that the appellant had supplied components of pumps and this was done in order to get over the legal difficulty and claim exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial supplied by the appellant was a new commercial commodity it cannot be said that it did not amount to manufacture. And that was not the dispute in the show cause notice which called upon the appellant to explain as to why the duty may not be levied on it as it was manufactured on its behalf. The ambit of controversy thus was not so much whether pumps were manufactured by different parties but whether it was manufacture on appellant's behalf. The Tribunal in this regard found it as fact that the appellant had no control either over the manufacturing process or manufacturing parties. Once the Tribunal recorded this finding it misdirected itself in entering into the question whether the pumps manufactured by third parties was mere assembli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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