1997 (5) TMI 154

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....their buyers is for the supply of the pump fitted with the motor and for that reason, therefore, the applicants can be taken to have supplied the commodity i.e. pump with motor as a separate entity. 2. The learned Advocate for the appellants Shri Ramesh has pleaded that the issue stands squarely covered in favour of the assessee by the ratio of the decision in the case of C.C.E. v. Kishore Pumps Pvt. Ltd. reported in 1997 (91) E.L.T. 91 (Tribunal). He has pleaded in that case the Tribunal after taking note of the contract of the supply of the pump with the motor has clearly held that for the reason that power is necessary for PD Pump to function does not make the source of power a component or integral part of the pump. In this conn....

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....nd uses it to operate a newly purchased PD Pump. Yet another customer may require to buy both Electric Motor and PD Pump from the same source. There are distinct commercial and trade patterns prevailing in the market. Conversion of electric energy into mechanical energy is the function of motor and not pump. They are different entities functionally and commercially. Electric Motor cannot be regarded as a component or integral part of a pump unless the excisable product manufactured is a unit combining both articles or is a component system which also may be known to the trade. The fact that without electric power a pump cannot be operated (barring cases of small mechanically operated pumps) does not render the former a component or integral....

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.... Department has no case that respondent was not entitled to the benefit of such procedure. 3. He has pleaded that the facts in the present case are similar to the facts dealt with by the Tribunal in the order referred to supra and, therefore, for that reason the applicants prayer for exclusion of the value of the motors from the assessable value of the motors has to be allowed. 4. The learned JDR for the Department has pleaded that the very fact that the contract for supply was for the PD Pumps with the motor. The entity which was supplied was a combination of power driven pumps and electric motor. He has pleaded that the goods have to be assessed based on the condition on which they are cleared from the factory. 5. ....