Customs, Excise and Gold Tribunal - Tamil Nadu
Elgi Equipments vs Commissioner Of Central Excise on 22 March, 2005
Equivalent citations: 2005(185)ELT167(TRI-CHENNAI)
ORDER C.N.B. Nair, Member (T)
1. The dispute is about classification of "Reciprocating Pumps" - (Vehicle Washers) manufactured by the appellant. Under the impugned order, it was classified under Heading No. 84.24 overruling the appellant's claim for classification under Heading 84.13.
2. Though, the matter is posted today for consideration of stay applications only, we have heard both sides at length and are disposing of the appeals themselves, after waiving the requirement for pre-deposit.
3. The contention of the ld. Representative of the appellant is that the Commissioner has erroneously gone by the use to which the pump is put, rather than its basic character as a pump. It is being pointed out that the same pump can be put to multiple use and the classification should not be made based on actual use. It is also being pointed out that the classification of similar items had been considered by the Board both under old Tariff as well as new Tariff, and the Board had advised classification of the items as pumps. Reference in this connection is made to C.B.E. & C. Tariff advise No. 54/82, dated 21-8-1982 and Circular No. 224/58/96-C.E., dated 26-6-1996. In the second Circular dated 26-6-1996, the Board clarified as under :-
"2. The matter has been examined in depth. Board in its F. No. 151/13/92-CX. 4 (Pt.) (Circular No. 11/11/94, dated 2-2-1994) has held that electric motors or rotors or stators are components parts of P.D. Pumps. Following the same analogy, the prime mover, i.e., I.C. Engine may be treated as an integral part of P.D. Pump. The Board takes note of Note 3 of Section XVI of Central Excise Tariff which states that composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of the component or as being and machine which performs the principal function. As the principal function of a pump set is that of the pump, the pump set is rightly classifiable under chapter sub-heading 84.13.
3. Hence, the Board is of the view that Power Driven Pump Sets are classifiable under Chapter Heading 84.13 and if such Power Driven Pump Sets are primarily meant for handling water, the benefit of Notification No. 56/95, dated 16-3-1995 will be admissible to the whole pump set."
There is no dispute in the present case that the item in question principally functions as a pump. Therefore, it is required to be classified as a pump (84.13) in terms of the Circular. The Commissioner was not right in going by the use to which the pump is put.
4. In view of what is stated above, the appeals are allowed, after setting aside the impugned order, with consequential relief if any to the appellant.