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4. Shri Sridharan arguing for the parties submitted that the conditions envisaged in the Notification are fulfilled and it is an admitted fact that these are parts of the parts of the power driven pumps, but exemption was denied on the ground that benefit of exemption under Notification is applicable to the parts of the power driven pumps but not to the parts of the parts of P.D. pumps. He said that Department erred in interpreting the Notification that exemption is applicable to the parts of the "pump" portion and not to other portion. He drew our attention to the observation made by the Collector (Appeals) in the impugned order-in-appeal No. 3421/92 which reads as under :-
"I observe that it grants inter alia exemption to "Parts of power driven pumps primarily designed for handling water, namely :- (a) Centrifugal pumps (horizontal or vertical pumps) (b) Deep tubewell turbine pump (c) Submersible pumps and (d) Axial flow and mixed flow vertical pumps." I find that the expression used is "Power driven pumps". In my view, the main emphasis is that the parts are to be of the "pump" portion and it applies to such pumps which are designed to be driven by power. No doubt, there are sets in which the pump portion and the power generating portion namely the electric motor are integrated into one like in a monoblock pump or they may be separate entities also but in both the situations there can be no dispute about the fact that stampings and laminations are evidently parts of rotor and stator which in turn are parts of the power generating unit. The rotor stator are not parts of "pump" portion."
6. While countering the arguments, Shri S.K. Sharma for the Revenue submitted that emphasis is on part of power driven pump as per the Notification and since exemption should be restricted to the parts of power driven pumps only. He said that the items in question are not parts of power driven pumps, but they are parts of the prime mover and parts of the prime mover are not eligible for exemption in view of the wordings of the notification. He said that the Tribunal has taken the view in the case of M/s. Saga Windel Engineers (P.) Ltd. v. Collector of Central Excise, Ahmedabad as per Order No. 159/1988-B1, dated 5-4-1988 that rotors and stators which went into the manufacture of mono-block pump sets which were classifiable under Tariff Item No. 30D as parts of electric motors. In view of this, stampings and laminations cannot be considered as parts of power-driven pumps to extend the benefit of exemption in terms of notifications. He also said that decisions cited by the other side are not applicable to the facts of this case.

8. We have carefully considered the arguments advanced on both sides and perused the records including citations. On going through the impugned orders in all these cases, we find that there is no dispute about the fact that these were used in the electric motors or in rotors or stators and in turn that was used as component part in the manufacture of power driven pumps. It is clear from the findings that these items are parts of the parts of power driven pumps and exemption was denied in the appeals filed by the parties on the ground that exemption was not applicable to the parts of the parts of power driven pumps. We are of the view that exemption cannot be denied on the ground that these were not parts of the power driven pumps. Furthermore, we do not find any distinction between parts and sub-parts in the aforesaid Notification. Under these circumstances, we do not find any justification in denying the benefit to the items in question since they are also parts of the 138 EXCISE LAW TIMES [ Vol. 67 power driven pumps. We are not convinced with the argument advanced by the Departmental Representative that exemption is applicable to the parts of the pump portion and not to other parts. We also take note of observation made by the Supreme Court in the case of M/s. Hemraj Gordhandas v. H.H. Dave, Assistant Collector of Central Excise & Customs, Surat and Others [1978 (2) ELT j 350], which is reproduced below :-