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No. Heading No. or sub-heading No. of the Schedule to the Central Excise Tariff Act, 1985 Description of goods.
Rate 84.13
(i) Power driven pumps designed for handling water, namely:- 
(a) Centrifugal pumps    (horizontal or vertical pumps);
 
(b)      Deep tube-well turbine pumps;
 
(c)       Submersible pumps;
 
(d)    Axial flow and mixed flow vertical pumps.
 

 
(ii)  Other power driven pumps.
 
  Nil
 

 

 

 

 

 

 

 

 

 

 

 
Ten per cent ad valorem
A perusal of the aforesaid entry indicates that "deep tube-well turbine pumps" comes under the description "power driven pumps designed for handling water", for which the rate of duty is nil, meaning thereby that it is exempted from payment of central excise duty.

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 16.3.95 will be admissible to the whole pump set."

According to the learned counsel for the petitioner, the said circular is binding and in view of Note 3 and 4, composite machines consisting of two or more machines fitted together would be covered under Entry 84.13 and, therefore, the "column and shaft assembly" as well as the "discharge head assembly" would be exempted from payment of excise duty.

According to the learned senior counsel, by applying Note 3 both column 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.

In the light of the aforesaid, the 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 pump. At best, the column and shaft assembly as well as the discharge head assembly only contribute to the effectiveness of the bowl assembly, which by itself is not sufficient to claim exemption as a machine under entry 84.13. The contention that all the three components put together can alone be classified as a pump is an irrelevant consideration.