Circular No. 224/58/96-CX dated 26/6/96
Subject:CE- Classification and excisability of Power Driven Pump Sets for
handling water-Regarding.
I am directed to say that the Confederation of Indian Industry has pointed cut
about divergence in practice of classification of Power Driven Pump Sets for handling
water- A P.D. Pump Set may be a pump having an inbuilt prime mover designed and built
as a complete unit, called a monoblock pump-set, or a pump and a prime mover being two
separable units whether coupled or not put/intended to be put on a common platform. It
has been represented that it is classified insome Commissionerates under Chapter
Heading 84.13 extending the benefit of Notification No. 56/95 dated 16.3.95 (previous
Notification No. 46/94 dated 1.3.94) either fully or partially whereas, other
Commissionerates are classifying this product under Chapter Heading 84.79 thereby
denying the benefit of exemption.
2. The matter has been examined in depth. Board in its F. No. 151/13/92-OM (Pt)
(Circular No. 11/11/94 dated 2.2.94) has held that electric motors or roK)rs
or stators are component 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 that component or
as being that machine which performs the principal function. As the principal function
of a pump set is that of the pump, the pump set is rightly classificable 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 16.3.95 will be admissible
to the whole pump set.
Sd/-
(Sanghamitra Panda)
Deputy secretary to the Govt. of India
F. No. 154/16/94-CX.4Presented by eximkey.com