2004 (8) TMI 569

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....rts of Turbines under Heading 8410.10, and not as pumps for liquids under Heading 8413.11. (ii)    Confirming demands for duty of Rs. 1,16,31,533/- (iii)   Imposing a penalty of Rs 1,16,31,533/- on the Appellant under Section 11AC. (iv)   Directing recovery of interest under Section 11AB. 2. Brief facts of the case are - (a)     The "Pumps & Projects Business Division" of the Appellant manufactures various models and types of centrifugal pumps for liquids. They are designed to pump water of different volumes and at different pressures depending on the requirement of the customer. The water handled with the use of these pumps is used for various applications including....

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....20th August, 2002 and 4th February, 2003, the department contended that the said pumps were liable to be classified as (i) parts of air-conditioning machines under Heading 8415.00 when they were supplied for use in air-conditioning systems, and as parts of turbines under Heading 8410.90 when they were used with turbines for producing electricity, (ii) that the extended period of limitation was applicable as the Appellant had suppressed facts regarding the design of the pumps, (iii) they were called upon to show cause as to why an aggregate amount of duty of Rs 1,16,31,533/- should not be recovered, why a penalty should not be imposed, and why interest should not be recovered on the duty payable. (e)     The Appellant ....

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....Further, centralised air-conditioning plants such as the ones in which such pumps were installed do not amount to excisable goods. (See; CBEC Circular No. 58/1/2002, dt. 15th January, 2002, Blue Star v. CCE - 2002 (143) E.L.T. 391 (T), Carrier Aircon v. CCE - 2003 (154) E.L.T. 710 (T). This Hon'ble Tribunal has held in the case of Airgrill Industries v. CCE - 2001 (132) E.L.T. 646 (T) & 2002 (141) E.L.T. A90 that in view of this position, a component of such an air-conditioning system cannot be classified under sub-heading 8415 as it is not a part of exigible goods. (c)     The finding that the pumps cleared for use in power plants amount to parts of hydraulic turbines is also erroneous. A turbine is a specific item o....

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.... cases classified in their own appropriate heading even if specially designed to work as part of a specific machine. It is also stated that this applies in particular to a list of goods which includes pumps and compressors (Headings 84.13 and 84.14). And reading the Explanatory Note to Heading 84.13 which provides that : (i)      The heading covers most machines and appliances for raising or otherwise continuously displacing volumes of liquids (including molten metal and wet concrete), whether they are operated by hand or by any kind of power unit, integral or otherwise. (ii)    The heading also includes delivery pumps and pumps specially designed for use with other machines, vehicles, etc. (....