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TMI Blog1996 (9) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... e for use solely or principally with the machines of Heading Nos. 85.01 and 85.02". Heading No. 85.01 covered, "Electric motors and generators (excluding generating sets, Electric generator sets and rotary Converters were classifiable under Heading No. 85.02. Initially, the respondents paid excise duty on these Rotors and Stators as applicable to parts of electric motors. On 21-4-86 they filed a revised classification claiming classification under Heading No. 84.13 i.e. applicable to pumps for liquids, whether or not fitted with a measuring device; liquid elevators. They also claimed exemption under amending Notification No. 236/86, dated 3-4-86, which had amended Notification No. 64/86-C.E., dated 10-2-86. The Asstt. Collector held that the stators and rotors which were being manufactured by M/s. Jyoti were separately classified under Chapter Heading No. 85 and they were primarily designed to create a motive power and even when this motive power is generated to the mono block pump, it will be correctly classifiable under Heading No. 85.03. The Collector (Appeals) while referring to the Board's clarification at page 11 of his order to the effect that Rotors and stators forming comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is submission that they were part of the power driven pump and enjoyed exemption available to them under Notification No. 64/86-C.E., dated 10-2-86 as amended by Notification No. 236/86-C.E., dated 3-4-86. 4. We have carefully considered the matter. There is no dispute that the respondents were engaged in the manufacture of Die Cast Rotors and Stators. Before the change in the new Central Excise Tariff, they were paying central excise duty as parts of electric motors. From 1-3-86 also, they were paying excise duty as parts suitable for use solely or principally with the electric motors. It was on 21-4-86 that they revised their classification and the Asstt. Collector rejected their classification under Heading No. 84.13 and classified them under Heading No. 84.03. 5. The Collector (Appeals) had held that the product monoblock pump could not be treated as parts suitable for use solely or principally with electric motor or electrical generating set. This was not the issue before him. The classification of monoblock pump was not in dispute. The question was whether the rotors and stators before they are used in monoblock pump are to be classified as parts of electric motor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1995 (79) E.L.T. 681 (Tribunal). This was a matter under the old Central Excise Tariff where the Tariff entry was different. The Tribunal had held that all the evidence on record pointed out that rotors and stators manufactured by the appellants were of a specific design for use in monoblock pump. It has also been brought out to our notice that those rotors and stators were not inter-changeable and could not be used in electric motors. As the Tariff had undergone the change and as it is settled position that question has to be based on the tariff entry as is in force and the decisions under the old Tariff are not applicable to the new Tariff, we find that this decision is of no assistance in the case of respondent. 10. As we have discussed above, although activating force is essential application of the pump, it is not necessary that in all cases both the power part and the motivating part should be together. It is only in the monoblock pump that both motivating force and water drawing part is housed together. 11. The Gujarat High Court in Special Civil Application Nos. 4656/86, 4658/86 & 1139/87, dated 7th September, 1987 [1992 (61) E.L.T. 421 (Guj.)] in the case of Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation declared : "Explanation V. - Where any specified goods (hereinafter referred to as inputs) are used for further manufacture of specified goods (hereinafter referred to as finished goods) within the factory of production of inputs and where such inputs and finished goods fall under the same item of the said First Schedule to the said Act, the clearances of such inputs for such use shall not be taken into account for the purposes of calculating the aggregate value of clearances under this notification." The Appellate Tribunal observed that in terms of the Explanation the clearances of inputs could not be taken into account for calculating the aggregate value of clearances only when the inputs and finished products fall under the same Item of the First Schedule to the Act. It pointed out that while electric motors were mentioned under Tariff Item 30, power driven pumps were specified under Tariff Item 30-A. It said that consequently the electric motors captively consumed as inputs in the manufacture of power driven pumps could not be excluded when determining the appellant's clearances. The appellant urged that the appellant had mistakenly stated that electric motors had been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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