TaxTMI 
TaxTMI 
2006 (10) TMI 303
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Goods used in the manufacture of certain varieties of power driven pumps primarily designed for water handling are exempt under Notification No. 6/2002 (Sr. No. 236 and Condition No. 58). The appellant availed of this exemption in regard to engines manufactured by it and cleared along with pump sets. Pumps for those power driven pump sets were obtained from M/s. Mahindra Engineering Works. The engines manufactured by the appellant and pumps procured from M/s. Mahindra Engineering Works were packed together along with the frame required for mounting the pump and engine and removed from the appellant's factory as one pump set. While removing such packets, the appellant treated them as power driven pumps and discharged duty under Centra....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... contention is that once the board has clarified that PD pumps is classifiable under a particular heading and engine is integral part of it, it was not open to the Commissioner to take a view that the clarification is only on the issue of classification and is not applicable on the question of whether there is manufacture. 5. We have perused the record and heard both sides at length. Much case law has also been cited by both sides on the issue of manufacture. 6. As already noticed, the appellant was discharging duty at the time of clearance of the PD pump packages after classifying them under 8413. The appellant described the item under sale as "Water pump-WSK2020" etc. The dealer invoice produced, forming part of the record....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing the same analogy, the prime mover, i.e. I.C. Engine may be treated as an integral part of P.D. Pumps. The board takes note of Note 3 of Section XVI of Central Excise Tariff which states that composite machines consisting of two or more machines fitted together to form a whole and other machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as, if consisting only of that component or as being that machine which performs the principal function. As the principal function of a pump set is that of the pump, the pump set is rightly classifiable under Chapter sub-heading 84.13. 3. Hence the Board is of the view that Power Driven Pump Sets are classifiable under Chapter Hea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ine and platform the appellant has produced a new item viz. power driven pump and the finding to the contrary is not sustainable. It is well settled that manufacture involves the bringing into existence of a new item with a distinct name, identity, character and use. That a power driven pump has a different and new commercial identity, character and use than the components going into its production is clear from the fact that the pump or engine in itself cannot perform as a power driven pump. We have already noted that PD pumps are recognized as a separate product by the industry manufacturing it and Central Excise Tariff. We do not consider it necessary to go into the case law relied upon by both sides, since we have taken a view that in t....