Classification of power driven water pumps: ordinary pumps fall under the water pump entry, not refrigeration components.

Power driven water pumps manufactured by the assessee were held to fall within entry 38 of the notification, which specifically covered machinery and spare parts of machinery including water pumps and pumping sets. Entry 57 was confined to refrigeration and air-conditioning appliances, their components, parts and accessories, and did not extend to ordinary pumps merely because they could be fitted in a water-cooler or used in desert coolers. The HC accordingly held that the pumps were not classifiable as components of refrigeration or air-conditioning equipment. The revision petitions were allowed and the Tribunal's order was set aside.

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Issues: Whether power driven water pumps manufactured by the assessee were classifiable under entry 38 of the notification covering machinery and spare parts of machinery including water pumps, or under entry 57 as components or parts of refrigeration and air-conditioning appliances.

Analysis: The pumps manufactured by the assessee were ordinary water pumps capable of lifting liquids and were specifically covered by entry 38, which included water pumps and pumping sets unless taxable under another item. Entry 57 dealt with refrigeration and air-conditioning plants and appliances, including mechanical water-coolers and their components, parts and accessories. On a proper reading of the notification as a whole, entry 57 applied to equipment functioning as part of refrigeration or air-conditioning systems, whereas the pumps in question were mainly used in desert coolers and did not become components of refrigeration equipment merely because they could be fitted in a water-cooler.

Conclusion: The pumps were taxable under entry 38 and not under entry 57. The revision petitions were allowed and the Tribunal's order was set aside.

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