Notification 5/98-C.E. exemption depends on whether the pump sets were power driven and covered by the prescribed procedure.

Exemption under Notification No. 5/98-C.E. was stated to apply to goods used in the manufacture of specified power driven pumps primarily designed for handling water, subject to compliance with Chapter X procedure. The text notes that "pump sets" was not shown, on the record, to mean only power driven pump sets in commercial parlance, and the factual nature of the goods remained unclear. Further verification was therefore required, and the notification benefit would be available if the pump sets were established to be power driven.

---

---

Issues: Whether the benefit of Notification No. 5/98-C.E. was available in respect of goods used in the manufacture of power driven pumps where the application referred to pump sets, and whether the goods were in fact meant for power driven pump sets.

Analysis: The exemption under Srl. No. 265 of Notification No. 5/98-C.E. applied to goods used in the manufacture of specified P.D. pumps primarily designed for handling water, subject to observance of Chapter X procedure. The record did not establish that the expression "pump sets" in commercial parlance referred only to power driven pump sets. Since the factual position was unclear and no supporting evidence had been produced to show the nature of the pump sets, a further factual inquiry was necessary. If the pump sets were power driven, the notification benefit would be available.

Conclusion: The matter was remanded to the adjudicating authority for verification of whether the pump sets were power driven; the assessee would be entitled to the notification benefit if that fact was established.

---