Supreme Court took note of the fact that parts of power-driven pumps, which
were to be utilized for manufacturing power-driven pumps within ... driven pumps Nil”
primarily designed for
handling water, namely—
(a) Centrifugal
pumps
(horizontal or
vertical pumps);
(b) Deep tubewell
turbine pumps;
(c) Submersible
pumps
power driven pump sets and monoblock pump sets would cover submersible pump sets also. It is not in dispute that the motor pump sets, which ... using electric power, mechanical power or solar power. As there is similarity in the manufacture of electric motors, power driven pump sets, monoblock pump sets
appellant, in our opinion, therefore,
is well-founded that both power driven pumps as well as parts of
power driven pumps used for manufacturing ... have been
made against the appellant in respect of parts of power driven
pumps by issuing show cause notices. The submission of the
appellant
extent of
Rs.6,84,117/- on intermediate products supplied to Power Driven Pump
Manufacturers.
In this regard, we submit that vide notification ... dated
2.6.1998, excisable goods supplied to certain category of Power Driven
Pump Manufacturers are subject to Nil rate of duty. Based on the
notification, certain
vide Notification No.46/94 dated 01.03.1994. In the said notification, power driven pumps were shown as an exempted item and due to inadvertence, parts ... power driven pumps used in manufacture of pumps within the factory, which were all along exempted from 1978, were omitted. The omission having been brought
covers "power driven pumps (including motor pumps, turbo pumps and monoblock pumpsets) for liquids". Submersible electrical pumps are power driven and operate ... with the aid of power. The nature of the goods is, therefore, similar to the nature of other power driven pumps, which have been classified
dated 1.3.1994, giving exemption from imposing excise duty on parts of power driven pumps used in the factory premises for manufacture of power driven pumps ... granting exemption for the first time in respect of parts of power driven pumps to be used in the factory and therefore, the subsequent notification
consistent policy of the Government of exempting parts of power driven
pumps utilised by the factory within the factory premises, it could not be
said ... granting exemption for
the 1st time in respect of parts of power driven pumps to be used in the
factory of manufacture of pumps
their own sister unit for manufacture of the final product Power Driven Pumps which is exempted from payment of excise duty. The period involved ... intermediate goods which are used in the manufacture of power driven pumps which are exempted from duty. There is no change in the price
correct in holding that the final product is castings and not PD pumps when castings are only captively consumed and not sold from the factory ... manufacture of dutiable products like CNC lathes, Lathe machines, Drilling Machines, Power Driven Pumps, CI Castings, Electric Motors etc., and exempted products like Centrifugal Water
