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The proceedings before the Central Government arose out of the review of an order in appeal passed by the Appellate Collector of Central Excise, New Delhi dated 14th July, 1975. The appellate Collector by the aforesaid order had accepted various appeals filed by M/s. Kirloskar Brothers Limited, appellant before us against various order passed by the Assistant Collector Central Excise, Indore.

The material facts giving rise to this litigation are as follows :-

The appellant carries on business of manufacturing power-driven pumps and monoblock pumps at Dewas. For manufacturing mono block type P.D. pump sets and power driven pumps, the appellant purchases electric motors from another company M/s. Kirloskar Electric Co. Ltd. The Superintendent Central Excise issued eight show cause notices to the appellant calling upon them to show cause why the short levy as mentioned in the notices should not be recovered from the appellant. The period to which the alleged short levy related was from 17th March, 1972 to 31st March, 1973.

The relevant part of the Notification No.84/72-CE dated 17.3.1972 as amended by Notification No. 113/72 dated 22.3.1972 reads as follows:-

"In exercise of the powers conferred by rule 8(1) of the Central Excise Rules, the Central Government hereby exempts power driven pumps falling under tariff item no. 30a of the first schedule to the Central Excise and Salt Act, 1944 (1 of 1944) and specified in column (2) of the table annexed hereto from so much of duty of the excise leviable thereon as in excess of the duty specified in the corresponding entry in column (3) of the said table.

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S.No		     Description		      Duty
(1)			(2)			       (3)

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1. POWER DRIVEN PUMPS PRIMARILY DESIGNED 10% FOR HANDLING WATER NAMELY ADVALOREM

i) CENTRIFUGAL PUMPS (HORIZONTAL OR VERTICAL PUMPS)

ii) DEEP WELL TURBINE PUMPS

iii) SUB MERSIBLE PUMPS AND

iv) AXIAL FLO AND MIXED FLOW NIL VERTICAL PUMPS.

2. OTHERS NIL

------------------------------------------------------------ PROVIDED THAT

It will be noticed that first part of the Notification exempts the 'Power Driven Pumps' falling under Tariff Item No. 30A of the first schedule to the Act and reduces the duty to 10% advalorem.

To understand more conveniently the meaning and scope of provisos, the provisos shorn of unnecessary words may read as under :-

"PROVIDED THAT :-

(i) Where the aforesaid pumps on which the duty of excise is leviable are fitted with duty paid...Electric motors....Such power driven pumps shall also be exempted from so much of the duty of excise leviable thereon ...as is equivalent to the duty of excise ......paid on such .....electric motors.