Excise duty on electric motors denied where identifiable motors were not found to come into existence during pump manufacture.

Electric motors were examined for excise duty on the basis that they allegedly emerged as identifiable goods during manufacture of monoblock pumps. The Tribunal applied its earlier decision in the assessee's own case and held that duty was payable on rotors and stators as parts of electric motors before their use in pump manufacture, but that an electric motor in identifiable form did not come into existence. On that reasoning, the Collector (Appeals)' view was not accepted and the appeal was allowed in favour of the assessee.

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Issues: Whether electric motors were liable to duty on the footing that they came into existence as identifiable goods during the manufacture of monoblock pumps.

Analysis: The issue was covered by the Tribunal's earlier decision in the assessee's own case. It was held that duty was payable on rotors and stators as parts of electric motors before their use in the manufacture of monoblock pumps, but that the electric motor in an identifiable form did not come into existence.

Conclusion: The view taken by the Collector of Central Excise (Appeals) was not accepted and the appeal was allowed in favour of the assessee.

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