TMI Blog1995 (12) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... common question of law in all these four reference applications for our opinion: "Whether, in the facts and circumstances of the case, the Board of Revenue was justified in holding that coupled pumping sets were not centrifugal pumps and, therefore, not covered by Notification No. 1100(17)-V-ST dated March 31, 1979?" 2.. Facts lie in a narrow compass. The assessee (M/s. Rajesh Electricals, Indore) is a registered dealer carrying on business mainly of purchase and sale of centrifugal pumps and electric goods on wholesale basis. Regular books of accounts have been maintained and sales and purchases have been fully vouched. The rate of tax on centrifugal pumps has been reduced from 5 per cent to 3 per cent vide Notification No. 1100(17) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions seeking statement of case and reference of question. On these four applications, the Tribunal referred the aforesaid two questions of law. One on the applications of the department and the other on the applications of the assessee. 3.. We have heard Shri S. Kulshrestha, learned Additional Advocate-General for the and Shri P.M. Choudhary, learned counsel for the non-applicant/assessee. 4.. The Tribunal took the view as under: "Thus the judicial consensus of the three High Courts is that a power driven centrifugal pump is an agricultural pump. As far as the monoblock pumping sets are concerned, it is clear that it will be taxed as a centrifugal pump under the notification dated March 31, 1979 at 3 per cent. As far as coupled sets a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound a centre". "Centrifugal pumps" are of two types as popularly known in commercial transaction. Monoblock centrifugal pump is one marketable commodity and is sold as such as one unit in one block. The centrifugal pump and electric motor are attached with one common shaft and are inseparable ([1980] 46 STC 504 (P H) [Paul Electric Company v. Assistant Excise and Taxation Commissioner (Inspection)]). In the above decision, the High Court placing reliance on the Supreme Court decision in case of Porritts Spencer (Asia) Ltd. [1978] 42 STC 433, has held that a monoblock centrifugal pump is included in the words "centrifugal pump". Coupled pump sets are those in which the centrifugal is coupled with either electric motor or diesel engine. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l pumps are required to be given benefit of reduced tax of 3 per cent. If sale of monoblock pumping sets is accepted by the Tribunal as governed by the notification it is little to understand as to why coupled pumping sets were not so accepted for concessional rate of tax. 11.. Indisputably centrifugal pumps are covered by the notification providing for reduced tax of 3 per cent. The simple question for consideration was whether monoblock pumping sets and coupled pumping sets are covered by the description "centrifugal pumps"? The assessee attempted to show that these pumping sets (monoblock and coupled) were demonstrably covered by the notification dated March 31, 1979. It is not clear from the record as to why coupled pumping sets were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , at 3 per cent. As regards the coupled pumping sets, the logical conclusion is that the same shall be treated as centrifugal pumps so long as motor is not sold separately as distinct item and identity. 15.. In the circumstances, we answer the questions as under: (a) Question No. 1: As regards monoblock pumping sets, we hold that the Tribunal was justified in holding that the sale of monoblock pumping sets was liable to be taxed at the rate applicable to centrifugal pumps, i.e., 3 per cent. We, therefore, answer this question in the affirmative, i.e., in favour of the assessee and against the department. (b) Question No. 2: As regards coupled pumping sets, we hold that the coupled pumping sets when sold along with motor, will be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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