Composite pump sets may qualify for water-pump exemption when the prime mover is integral and water handling remains the principal function.

A composite pump set with an integral diesel engine may qualify as a power-driven pump where the principal function is handling water. The text notes that the Board circular treats an I.C. engine as part of the pump set and supports classification of composite machines by their principal function under Chapter Heading 84.13. On that basis, a pump primarily designed for water handling can fall within Notification No. 10/2006-C.E., and exemption is available even if the drive is not electric. The record was found sufficient to support the exemption.

---

---

Issues: Whether the imported centri water pumpset, comprising a diesel engine, was entitled to exemption under Notification No. 10/2006-C.E. as a power-driven pump primarily designed for handling water.

Analysis: The goods were declared as a pumpset and the factual assertion that the pump and diesel engine were imported separately was not supported by the record. The Board circular relied upon by the appellate authority clarified that an I.C. engine may be treated as an integral part of a power-driven pump, and that composite machines are to be classified with reference to their principal function. The circular therefore supported both classification under Chapter Heading 84.13 and the view that a power-driven pump need not be driven only by electric power. The notification extended exemption to power-driven pumps primarily designed for handling water, and the record showed that the imported item answered that description.

Conclusion: The exemption under Notification No. 10/2006-C.E. was correctly allowed, and the challenge to the order granting the benefit failed.

Final Conclusion: The appeal was dismissed and the exemption granted to the respondent was sustained.

Ratio Decidendi: A composite pump set may qualify as a power-driven pump for exemption purposes when the prime mover is an integral part of the set and the principal function remains pumping water.

---