1993 (2) TMI 181 - AT - Central Excise

Appellate Tribunal rules stampings and laminations exempt as parts of power-driven pumps

The Appellate Tribunal CEGAT, New Delhi ruled in favor of the Assessee in the appeal regarding the availability of exemption for stampings and laminations ... Stampings and laminations used in electric motors Issues involved: Appeal on the availability of exemption for stampings and laminations u/s Notification No. 64/86.Summary: The Appellate Tribunal CEGAT, New Delhi heard multiple appeals regarding the availability of exemption for stampings and laminations under Notification No. 64/86. The issue revolved around whether the exemption applied to parts of power-driven pumps or only to specific portions. The Tribunal considered arguments from both parties and examined the relevant notifications and legal precedents.Notification No. 64/86: The Notification specified conditions for exemption for parts of power-driven pumps, emphasizing the use of such parts in the manufacture of these pumps. The dispute arose as to whether stampings and laminations, being parts of the parts of power-driven pumps, were eligible for exemption under the Notification.Assessee's Argument: The Assessee contended that the exemption should apply to all portions of power-driven pumps, including parts of the parts. They cited legal decisions supporting the concept that a component of a component is still a component part of the machine, thus arguing for the inclusion of stampings and laminations under the exemption.Revenue's Argument: The Revenue argued that the exemption should be limited to parts of power-driven pumps only, excluding parts of the prime mover. They referenced a Tribunal decision classifying rotors and stators as parts of electric motors, not power-driven pumps, thus denying exemption to stampings and laminations.Tribunal's Decision: After considering all arguments and legal precedents, the Tribunal concluded that stampings and laminations, being parts of the power-driven pumps, were eligible for exemption under Notification No. 64/86. They rejected the Revenue's interpretation that the exemption applied only to specific portions, emphasizing that there was no distinction between parts and sub-parts in the Notification. The Tribunal's decision aligned with the principle that tax exemptions should be based on the clear meaning of the words in the statute.Conclusion: The Tribunal ruled in favor of the Assessee, holding that there was no justification for denying the benefit of exemption to stampings and laminations as they were integral parts of power-driven pumps. All appeals related to this issue were disposed of accordingly.