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2013 (4) TMI 27 - AT - Central ExciseClassification - Differential duty - manufacture of Centrifugal Pumps - Power driven pump - benefit of notification No. 10/2006-C.E., dated 1-3-2006 for discharge of duty liability at concessional rate of duty than the rate fixed by the tariff. - Department found that appellant is not eligible for the benefit as mentioned in the notification. Held that:- Applying the ratio of judgment of Larger Bench in CHIEF ENGG. RANJIT SAGAR DAM Versus COMMISSIONER OF C. EX., JALANDHAR[2006 (1) TMI 356 - CESTAT, NEW DELHI], it can be seen that the product manufactured by the appellant is undoubtedly classificable under Chapter 84.13 which was covered by Notification No. 10/2006-C.E., dated 1-3-2006, and eligible for benefit of reduced rate of duty. The exemption has been denied to the appellant on the ground that the notification provides the exemption only when the pumps are power driven i.e. the pumps should have the motors attached to them. This requirement does not flow from the exemption notification at all. ‘Power driven pump’ does not necessarily mean that the source of power for the pump should be attached to the pump. What is required is that it should be a pump driven by power, which can be an IC engine or an electric motor or some other source of power. A pump which is designed to handle the water and is power driven viz. it could be a mono block pump where the pump and electric motor are integral parts of the pump set or a pump set where the provisions are made for fitting an electric motor can be considered as power driven pumps even when the source of power is not fitted. Quite often, the customer purchases only pumps from the manufacturer independently. In such cases, a pump purchased by him does not become a non-driven power pump just because the customer bought it without a motor. - Benefit of exemption allowed - Decided in favor of assessee.
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