TMI Blog2014 (9) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... c energy and water is forced out by a pressure from the pump itself. This rotating action in the bowl assembly is done when an electrical energy is supplied to the bowl assembly. The column and shaft assembly and the discharge head assembly merely enables the water to pass out from the bowl assembly to the surface. The discharge head and the column and shaft assembly merely keeps the bowl assembly suspended at the appropriate depth so that water could be forced out. What is driven by the power is the parts of the bowl assembly. The column and shaft assembly and discharge head assembly remains stationary and are therefore accessories and not "machine". In a vertical turbine pump, energy is supplied by electricity. The electric motor converts the electrical energy into a mechanical energy which is injected through the parts of the bowl assembly, namely, the vanes of the impellers which converts the mechanical energy into kinetic energy making the water move up under pressure built by the impellers. bowl assembly performs the function of a power driven pump and that the column and shaft assembly as well as the discharge head assembly does not perform the function of a power driven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured by them consist of- (1)bowl assembly (2)column and shaft assembly, and (3)discharge head assembly. The petitioner contended that these assemblies when fitted together performs the function of a pump by which water is lifted from one point to another point by a rotating action of the shaft and the impeller. The contention of the petitioner is, that the bowl assembly alone could not perform the principal function of a pump, which is to lift the water from a deep tube well in the absence of a column and shaft assembly as well as discharge head assembly. It was contended that in the absence of these two assemblies the bowl assembly could not rotate or convert the mechanical energy into kinetic energy and that the bowl assembly could only perform the function of a pump only with the help of column and shaft assembly as well as discharge head assembly when water is lifted from the deep tube well to the ground level. The contention of the petitioner was that the bowl assembly cannot perform the principal function, namely, lifting of the water without the help of the column and shaft assembly and discharge head assembly. The submission of the petitioner did not fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... embly, column and shaft assembly and a discharge head assembly and that bowl assembly is sub-merged deep in the well, which is connected to a driving motor at the top of the discharge head assembly on the top of the well, which is connected and joined by a column and shaft assembly. It was contended that the bowl assembly performs the function of lifting water from the tube well by action of rotating the shaft and impeller by a mechanical power in order to create water pressure for the purpose of lifting the water from the deep tube well to the ground level. The learned counsel contended that the vertical turbine pump comprising of all the three components can effectively function only if all the above three components are fitted together for performing the function of the pump, namely, to lift the water from underground to the surface level. The learned counsel contended that the bowl assembly by itself cannot perform the principal function of the pump, namely, lifting of the water and that the principal function is facilitated by the column and shaft assembly as well as the discharge head assembly and, therefore, all the three components put together only can be classified as a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the machines performing the principal function. The learned senior counsel contended that reliance by the Tribunal upon the decision of the Gujarat High Court in the case of Jyoti Limited., Baroda vs. Union of India, 1979 (4) ELT (J 546) affirmed by the Supreme Court, reported in 1997(96)ELT (A73) was not applicable as it was under the old Tariff Act and that the present dispute is under the new Tariff Act in which Note 3 and 4 has been issued, which is binding and applicable upon the authorities. Having heard the learned counsel for the parties, we find that the present dispute can be narrowed down to the question, namely, whether the column and shaft assembly and discharge head assembly is liable for payment of excise duty or whether these components are entitled for exemption being a composite machine to the power driven pump. The petitioner claims exemption of notification No.155/86, dated 1.3.1986, as amended by notification No.277/86 dated 24.4.1986 and notification No.365/86 dated 29.7.1986, which relates to Chapter heading 84.13 of the Schedule to the Central Excise Tariff Act, 1985. In order to appreciate the submission of the learned counsel, it would be appropriate to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 26.6.1996 was issued by the Central Board of Excise and Customs clarifying Note 3 and 4. For facility, the said circular is extracted hereunder:- Circular No. 224/58/96-CX, dated 26-6-96 [From F.No. 154/16/94-CX.4] Government of India Ministry of Finance(Department of Revenue) Central Board of Excise Customs, New Delhi/ Subject: CE- Classification and excisability of Power Driven Pump Sets for handling water - Regarding. I am directed to say that the Confederation of Indian Industry has pointed out about divergence in practice of classification of Power Driven Pump Sets for handling water. A.P.D. pump set may be a pump having an inbuilt prime mover designed and built as a complete unit, called a monoblock pump-set, or a pump and a prime mover being two separable units whether coupled or not put/ intended to be put on a common platform. It has been represented that it is classified in some Commissionerates under Chapter Heading 84.13 extending the benefit of Notification No.56/95, dated 16.3.1995 (previous Notification No.46/94, dated 1-3-994) either fully or partially whereas, other Commissionerates are classifying this product under Chapter Heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olumn and shaft assembly and discharge head assembly are to be classified as machines performing the principal function under heading 84.13 of the Central Excise Tariff Act. Further, under Note-4, the combination of machines consisting of individual components, which put together and intending to contribute a clearly defined function would again fall in the heading appropriate to that function and according to the learned counsel the bowl assembly along with the column and shaft assembly and the discharge head assembly and all the three components put together only contributes to the main functions of a power driven pump and therefore, all the three components is required to be classified as a power driven pump under heading 84.13. The submission of the learned senior counsel appears to be attractive, but, only on a closer scrutiny, the Court finds that such contention cannot be accepted. Note 3 and 4 as well as the circular dated 26.6.1996 only indicates that composite machines is to be classified under the heading of machines which performs the principal function. The question to be answered in the instant case is, whether column and shaft assembly and discharge head ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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