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TMI Blog2003 (7) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... of excise duty. Diesel engines are also removed for captive consumption for the manufacture of centrifugal pump sets commonly known as couple sets. Centrifugal pump sets consists of diesel engine as well as centrifugal pumps. These two items are coupled together and mounted together on a common base plate. The resultant product is called as pump set or couple-set. (c) The department took the view that diesel engine when cleared for captive consumption is not chargeable to duty in view of Notification No. 4/97-C.E., Notification No. 5/98-C.E. (pg 7-14 of compilation) of similar notifications issued from time to time in each Financial Year (hereinafter referred to as "the said notifications") and therefore, since the final product, nam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is order covers the period April, 1997 to March, 1998. Consequently, PFMI is entitled to refund of 8% paid by them under Rule 57CC on the price of the diesel engines. (g) While the aforesaid issue was pending, the department at the same time raised another dispute to the effect that PFMI is required to reverse 8% on the selling price of the centrifugal pump sets, and not on the price of diesel engine. Accordingly, the department raised a demand for the differential amount covering the period April, 1997 to September, 2000 being the amount of 8% on the price of the pump sets. (h) The Commissioner (Appeals) vide three separate Orders-in-Appeal dated 31-5-2000, 7-11-2000 and 15-5-2002, took a contrary view to that of the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at amounts reversed under Rule 57CC are not duty the same cannot be covered by the stipulations of Section 11B of the Central Excise Act, 1944 and the theories of unjust enrichment. The order of the lower authorities to that effect can not be sustained. (b) IC engines are separate excisable entities mentioned in the Tariff and by application of the rules of classification for parts as provided under CETA, 1985 they cannot be termed and or classified as parts of centrifugal pumps or couple sets as is being contended by Revenue. (c) Once IC engines come into existence in the appellants factory, as a separate excisable entity, on removal of the same duty is to be discharged. Even if that removal is within the same premises fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the manufacture of both the aforesaid categories of final products, whether directly or indirectly and whether contained in the said final products or not, the manufacturer shall, unless the provisions of sub-rule (9) are complied with, pay an amount equal to eight per cent of the price (excluding sales tax and other taxes, if any, payable on such goods) of the second category of final products charged by the manufacturer for the sale of such goods at the time of their clearance from the factory." Would indicate that the pump sets and value thereof cannot be sought to be reversed since the amounts which are required to be reversed, should be of products sold. In these cases what is being sold are diesel engines for home consumption and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (g) In view of our findings, the debits of 8% made under protest are required to be reversed, there being no bar of Section 11B, No demands in this case as made out and confirmed, as regards the 'amounts' under Rule 57CC could be upheld and orders thereto are required to be set aside. 4.All these appeals of PFMI are allowed in the above terms. 5.The issue in the Appeal Nos. E/2014/02, E/2015/02, E/2343/01, E/319/01/Mum. filed by M/s. Swati Enterprises against CCE Rajkot being the same, these appeals are also disposed of with the same findings and with the same directions. 6.Appeal Nos. E/78, 79/99 and E/81 to 83/99 are filed by the Revenue against the Commissioner (Appeals) ordering the refund of amounts paid under Rule 57C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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