Customs, Excise and Gold Tribunal - Mumbai
Swati Enterprises, Overseas Engineers ... vs Commissioner Of Customs And Central ... on 19 October, 2001
JUDGMENT Gowri Shankar, Member (T)
1. These applications are for waiver of deposit of duty and penalty indicated below:
Duty Penalty Swati Enterprises Rs. 29,360/- Rs. 3,500/- Overseas Engineers Rs. 83,032/- Rs. 25,000/- Patel Field Marshall Inds. Rs. 3,11,744/- Rs. 30,500/-
2. Each of the three applicants is engaged in the manufacture of diesel engines and internal combustion engines. Each of them is also engaged in the manufacture of centrifugal pumps, consisting of the pump and a diesel engine coupled together on a common base. The applicants utilised the diesel engines that they have manufactured in the manufacture of these centrifugal pumps. Entry No. 186 of the table to notification 4/97 exempts goods other than those specified therein form payment of duty if they are used within the factor of production in the manufacture of specified power driven pumps primarily designed for handling water. Diesel engines are not among the specified goods excluded against the entry 186 and centrifugal pumps are specified as one of the power driven pumps. Therefore, diesel engines used in the manufacture of centrifugal pumps are exempted form duty. The department therefore concluded that part of the goods that the applicant manufactures are exempted from duty and therefore covered under Rule 57CC requiring deposit of duty equal to 8% of the sale price to come into play. Hence notices were issued demanding duty and proposing penalty. Hence the order of the Assistant Commissioner, confirmed by the Commissioner (Appeals).
3. The contention of the common counsel for the applicants is that the goods manufactured by utilising diesel engines are not centrifugal pumps but centrifugal pump sets. These are different centrifugal pumps. He relies upon the IS specifications 10804/1986 "Pumping systems for agricultural purposes". The counsel does not deny that the goods that is "pump sets" are rightly classifiable under heading 8413.11 which refers to centrifugal pumps. The Explanatory Notes to the HSN do not support the view that it is only the pumps without prime mover which are classifiable under this heading.
4. Counsel for the applicants before me produces a stay order passed by a single member of the Tribunal waiving deposit of the applicant in its own case. However, the reading of that order indicates that the departmental representative did not raise before him the points that was to be put to counsel for the applicant that the term pump would include one with a prime mover.
5. I do not consider myself bound by this stay order. I however take note of this order in deciding to waive deposit of duty. I therefore waiver deposit of penalty imposed on each of the applicants and direct deposit duty of Rs. 12,000/- by Swati Enterprises, Rs. 32,000/- by Overseas Engineers and Rs. 1,20,000/- by Patel Field Marshall Inds. within six weeks form the receipt of this order. Thereupon I waive deposit of the remaining duty and stay its recovery.
6. Compliance on 21st December, 2001.