Water-handling design test governs exemption for marine pumps used for fire-fighting and drinking water systems.

Marine pumps were treated as primarily designed for handling water, because the Revenue's own case showed use for drawing sea water for fire-fighting and drinking water systems, which supported the basic water-handling design purpose. The technical material relied on by the Revenue did not establish any other dominant design use, so the exemption under the relevant Central Excise notifications was available.

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Issues: Whether the marine pumps were primarily designed for handling water so as to qualify for the exemption under the relevant Central Excise notifications.

Analysis: The exemption was available only if the pump was primarily designed for handling water. The Revenue's own grounds described the pumps as being used for drawing sea water for purposes such as fire fighting and drinking water systems, which showed that handling water remained the basic design purpose. The material relied upon by the Revenue did not displace that position, and the technical write-up did not establish that the pumps were primarily designed for any other dominant use.

Conclusion: The pumps were held to be primarily designed for handling water and therefore entitled to the exemption.

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