1998 (9) TMI 207 - AT - Central Excise

Summary

Issues:
1. Eligibility of pumps used for desert coolers for exemption under Notification No. 142/88-C.E.

Analysis:
The appeal in question dealt with the eligibility of pumps used for desert coolers to receive the benefit of exemption under Notification No. 142/88-C.E. The Collector of Central Excise (Appeals) had initially ruled that the pumps manufactured by the appellants did not qualify for the said exemption based on I.S.I. specification and H.S.N. Explanatory Notes.

The appellant's advocate argued that the pumps in question were centrifugal pumps and fell under the category of submersible pumps. They contended that the parts of the electrical motor used in manufacturing submersible pumpsets were eligible for exemption. The appellant's position was that their pumps, although used in desert coolers, were submersible pumps as they remained within the water.

The Respondent-Revenue's representative countered this argument by highlighting the distinction between pumps for desert coolers and those recognized as submersible pumpsets in the trade. The Appellate Authority had also referenced the HSN Explanatory Notes to support the finding that pumps for desert coolers did not classify as submersible pumpsets.

Upon careful consideration, it was established that the exemption under Notification No. 142/88-C.E. applied only to specific parts of electric motors used in the manufacture of submersible pumpsets or mono-block pumpsets, subject to certain conditions. The Collector of Central Excise (Appeals) had correctly determined that the pumps for desert coolers did not meet the criteria to be considered submersible pumpsets, based on design, specification, and industry recognition.

The Appellate Tribunal concurred with the Collector's decision, emphasizing that the pumps in question did not qualify as submersible pumps based on the description of centrifugal pumps provided in the H.S.N. Explanatory Notes. The Tribunal found no merit in the appellant's argument and upheld the denial of the exemption under Notification No. 142/88-C.E. The appeal was consequently dismissed.