TaxTMI 
TaxTMI 
2026 (7) TMI 584
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....tral Excise Tariff Act, 1985. For the purpose of payment of central excise duty on the products manufactured and for compliance with Central Excise statute they are registered with jurisdictional central excise authorities vide Central Excise Registrations No. AAACK5918JXM005 for Chinchwad unit and No. AAACK5918JXM003 for Pimpri unit. 2.3 The Directorate General of Goods & Service Tax Intelligence (DGGI), Mumbai on the basis of information received by them suggesting evasion of central excise duty by the appellants, had visited the factory premises at Pune on 29.11.2016 for examination of records, documents pertaining to manufacture and clearance of 'boiler feed pumps'. DGGI found that the appellants were evading central excise duty in clearance of the 'boiler feed pump' by mis-classifying it under Central Excise Tariff Item (CETI) 8413 7010 and availing excise duty concession @6% applicable for water pump, centrifugal water pump (primarily designed to handle water) vide Serial No.235 of Notification No.12/2012-C.E. dated 17.03.2012, instead of correct classification under CETI 8413 7095 attracting excise duty @ 12.36%/ 12.50% adv. 2.4 Therefore, detailed investigation was co....
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....y the Co-ordinate Bench of the Tribunal in the case of WPIL Limited Vs. Commissioner of CGST & Central Excise, Kolkata North Commissionerate - 2025 (5) TMI 1751 - (CESTAT KOLKATA) 4. Learned Authorized Representative (AR) appearing for the Revenue reiterated the impugned order passed by the learned Principal Commissioner. Thus, he submitted that in terms of GRI 3(c), the impugned goods are rightly classifiable under CETI 8413 7095. Therefore, he pleaded that the appeals filed by the appellants may not be entertained. 5. Heard both sides and perused the records of the case. We have also considered the additional written submissions given in the form of paper books by learned Counsel for the appellants as well as Authorised Representative for the Revenue, and the arguments advanced during the hearing of this case. 6. The issue for consideration before us is determination of the proper classification of impugned goods, for deciding on the appropriate levy of central excise duty under Section 3 of the Central Excise Act, 1944, as specified under the Schedule to the Central Excise Tariff Act, 1985; and, whether the demand of duty confirmed in the impugned order by invoking the ....
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.... or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer ....
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.... in order to determine the appropriate central excise duty payable on any excisable goods, one has to make an assessment of such goods for its correct classification under the First Schedule to Central Excise Tariff Act, 1985 in accordance with the provisions of the Central Excise Tariff Act by duly following the General Rules for Interpretation (GRI) and the General Explanatory notes (GEN) contained therein. The First Schedule to the Central Excise Tariff Act, 1985 specifies various categories of excisable goods in a systematic and well-considered manner, in accordance with an international scheme of classification of internationally traded goods i.e., 'Harmonized Commodity Description and Coding System' (HS) followed under the Customs Tariff Act of 1975, upon adoption of new 8 digit Central Excise Tariff w.e.f. 28.02.2005, through the Central Excise Tariff (Amendment) Act, 2005 (5 of 2005). Accordingly, excisable goods are to be classified taking into consideration the scope of headings / sub-headings, related Section Notes, Chapter Notes and the General Rules for the Interpretation (GRI) of the Schedule to the Central Excise Tariff Act, 1985. Rule 1 of the GRI provides that the ....
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....the Noticees have stated that, the Tariff Item 84137095 is residuary entry and the primary entry would be under Tariff Item 84137010. This interpretation is incorrect, as tariff specifically mentions Boiler Feed Pump at Tariff Item 84137095 and by no stretch of imagination it can be treated as residuary entry. The Tariff Item 84137095 specifically mentions the Bøller Feed Pumps in the tariff and cannot be treated as residuary entry by any stretch of imagination. Therefore, I find that the BFP will be classifiable under Tariff Item 84137095 and not under Tariff Item 84137010, as claimed by the Noticees. For this contention and conclusion, I rely upon the Apex Court judgments, in the case of Speedway Rubber v CCE-2002 AIR SCW 2181 & CCE V Maharshi Ayurveda Corpn Ltd. 2006 (193) ELT 10 (SC), wherein, it was held that in case of conflict between the various headings, specific heading / description will be preferred over the general heading / description. It was also held in the judgement of Collector of CEX. V Metrowood Engineering Works - 1983 (43) E.L.T. 660 (Tri.) that in accordance with the Rule 3 (a) of the General Rules for Interpretation of this Schedule (GIR), the headin....
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....ven at the sub-heading level also, there is no difference of opinion among the department and the appellants. The dispute in classification therefore lies in the narrow compass of analysis of the appropriate tariff entries in the sub-heading under which the impugned goods are covered as per the Central Excise Tariff and then classifying the impugned product under the corresponding Tariff Item. Now, we may closely examine the scope of the contending classification for determining correct classification of the impugned goods. The relevant tariff entries of contending classification of impugned goods under Chapter heading 8413 and sub-heading 841370 and the relevant Chapter notes, Heading/Subheading notes, if any, in the First Schedule to the Central Excise Tariff Act, 1985 are extracted and given below: "SECTION XVI MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS; AND PARTS AND ACCESSORIES OF SUCH ARTICLES CHAPTER 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof Notes : 1. This Chapter does not cover : xxx xxx....
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....- Of reciprocating pumps 8413 91 20 --- Of centrifugal pumps 8413 91 30 --- Of deep well turbine pumps and of other rotary pumps 8413 91 40 --- Of hand pump for handling water 8413 91 90 --- Other 8413 92 00 -- Of liquid elevators 9.2 On careful examination of the above description of goods in the entire chapter sub-heading 841370 and the two contending tariff entries under subheadings of 8413 70 i.e., 8413 7010 and 8413 7095, it clearly transpires that only at the eight-digit level, there is difference of opinion in classification of impugned goods among the appellants and the department. Therefore, the dispute in classification could be resolved by proper examination of the scope of all goods covered under sub-heading 841370 and disputed two individual tariff items, in any one of which the impugned goods are required to be correctly classified. Now, we may also look at the HSN Explanatory notes of the World Customs Organization (WCO) which provides the basis for standardized classification under HS Nomenclature at six-digit level, based on which the Central Excise tariff has been harmonized at the eight digit level along with the....
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....ainst pressure. Multi- cylinder pumps are used for increased output. The cylinders may be either in line or in a star shape. This category includes : (1) Diaphragm pumps. These incorporate a vibrating membrane of metal, leather, etc. (actuated either directly or through a fluid transmission) by which the liquid is raised. (2) "Oil-cushion " pumps (for drainage, irrigation, pumping viscous liquids, acids, etc.). In these, a fluid immiscible with the pumped liquid acts as the membrane. (3) Electro-magnetic pumps. In these, the forward and reverse strokes of the piston are produced by electro-magnetic action (oscillation of a wing placed in a magnetic field). (4) Machines using the suction or forcing action of two pistons, such as those pumps designed to deliver wet concrete (concrete pumps). However, special purpose vehicles permanently equipped with the concrete pumps of this heading are excluded (heading 87.05). (B) ROTARY POSITIVE DISPLACEMENT PUMPS In these also, the intake and discharge of the liquid is effected by suction and compression, in this case produced by cams (lobes) or similar devices, rotated continuously on an....
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....nnel pumps and radial flow impeller pumps. (D) OTHER PUMPS The following pumps fall in this group : (1) Electro-magnetic pumps. These pumps have no moving parts, the liquid being put into circulation by the phenomenon of electrical conduction. These pumps should not be confused with certain reciprocating positive displacement pumps in which the in-and-out movement of a piston is obtained by electro-magnetic effect, nor with those which function by magnetic induction. (2) Ejectors. In this type of pump, the kinetic energy of a jet of air, steam, water, etc., under pressure ejected from a tube, induces a suction and entrainment effect on the liquid handled. These pumps comprise a complex system of divergent and convergent pipes in a closed chamber from which the system of pipes emerges. Injectors of the Giffard type for supplying water to boilers, and injection pumps for internal combustion piston engines, working on the same principle, are also classified here. (3) Emulsion pumps (gas lift pumps). In these, the liquid is mixed with compressed gas in the outlet pipe, the decrease in density of the emulsified liquid thus providing the li....
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....r linear suction force or forcing action by use of piston or plunger driven within a cylinder; or suction and compression force produced by cams/lobes or similar devices rotated continuously in an axis; or rotational force by use of revolving blades etc. these have been categorized as reciprocating, rotary or centrifugal type. These are described as below: (i) first category is about all types of 'reciprocating' positive displacement pumps, which are included in any of the sub-headings 841311, 841319, 841320, 841330, 841340 depending upon the fitment with measuring device, hand operated, for use in IC piston engines etc., and other type of reciprocating positive displacement pumps under sub-heading 841350; (ii) second category covers 'rotary' positive displacement pumps, which are included in any of the sub-headings 841311, 841319, 841320, 841330, 841340 depending upon the fitment with measuring device, hand operated, for use in IC piston engines etc., and other type of rotary positive displacement pumps under sub-heading 841360; (iii) third category covers all types of 'centrifugal' pumps which are included in any of the sub-headings 841311, 841319, 8413....
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....ing transaction cost of the trade, by eliminating disputes arising due to multiplicity of classification codes; facilitating computerization of tax administration and electronic data processing. Thus, looking from the overall perspective of the classification of goods in an uniform manner, the HSN explanatory notes definitely guide for appropriate classification of goods. 9.5 From the above analysis of the scope of coverage of goods under various sub-headings and tariff entries under Chapter heading 8413, by applying the GRI 1, we arrive at the following conclusion about the scope of coverage of goods within scope and ambit of various sub-headings, for ascertaining proper classification: (A) All pumps covered under various category itemized under (i) to (iv) of paragraph 9.3 above, fitted or designed to be fitted with a measuring device are classifiable under chapter sub-heading 841310, which include hand pumps for dispensing fuel or lubricants in filling stations or garage covered under CETI 8413 1110; non-hand operated pumps for dispensing fuel in filling stations or garage covered under CETI 8413 1191 and such pumps for dispensing lubricants covered under CETI 8413 1....
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....essure of several helicoidal threads meshed together and turning, or such pumps with two or more screws, helicoidal spindles, endless screws are classifiable under CETI 8413 6020. Other Rotary positive displacement pumps, other than those covered under CETI 8413 6010 and 8413 6020 are covered under CETI 8431 6090. (G) 'Other' Centrifugal pumps, i.e., other than those covered under (A) to (D) above, are classifiable under sub-heading 841370. Further, such Centrifugal pumps which are primarily designed to handle water are classifiable under specific tariff entry CETI 8413 7010. Further, such Centrifugal pumps which are not primarily designed to handle water, and are for handling liquid other than water are covered under specific tariff entries of "---" dash level 8413 7090, under CETI 8413 7091 if these are of single or multistage chemical process pumps; under CETI 8413 7092 if these are of horizontal split casing pumps; under CETI 8413 7093 if these are of horizontal self-priming pumps; under CETI 8413 7094 if these are of vertical turbine driven pumps; under CETI 8413 7095 if these are of boiler feed pumps; under CETI 8413 7096 if these are of slurry pumps; under CETI 8413....
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....he sub-heading/ '-' single dash entry 8413 70 have been split into two distinct group of goods, one for handling water under CETI 8413 7010 and the second one for handling 'other liquid, other than water' under CETI 8413 7091 to 8413 7099. Similarly, 'condensate extraction pumps' which is used for pumping water from the condenser to the feed water tank of the boiler system, being the pumps for primarily handling water is also classifiable under CETI 8413 7010. Thus, it can be concluded that all type of 'other centrifugal pumps' which are primarily designed to handle water can be classifiable under CETI 8413 7010, and not under CETI 8413 7095 for the reason that it is covered by specific description of 'boiler feed pumps' as such goods are meant for handling any liquid other than water. 10.1 The impugned goods are described by the learned Principal Commissioner as part of the boiler system and thus he concluded that the 'boiler feed pump' and 'condensate extraction pump' are categorized differently from the pumps that are primarily designed to handle water. Further, he has also concluded that the impugned goods are Power driven pumps designed for handling water, for justifying hi....
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....d the 1" March,2006, except as respects things done or omitted to be done before such supersession. the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in column (3) of the Table below read with relevant List appended hereto and falling within the Chapter, heading or sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Excise Tariff Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of excise specified thereon under the First Schedule to the Excise Tariff Act, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table and subject to the relevant conditions annexed to this notification, if any, specified in the corresponding entry in column (5) of the Table aforesaid: Provided that nothing contained in this notification shall apply to the-goods specified against serial number 296 and 297 of the said Table after the 31 day of March, 2013. Explanation 1 .- For the purpose....
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....disputed goods in the present case are covered both by specific description as 'centrifugal pumps', and by chapter heading '8413', as these are classifiable under CETI 8413 7010, the exemption entry squarely covers the said disputed goods. Therefore, we do not find any justifiable grounds for denying the benefit of the exemption entry at Sl. No. 235 of Notification No.12/2012-C.E. dated 17.03.2012, as amended. Since various types of pumps that primarily handle water are mentioned in the said exemption entry, including centrifugal pumps of both vertical and horizontal type, the conclusion arrived at by the learned Principal Commissioner that the exemption under Sl. No. 235 of Notification No.12/2012-C.E. dated 17.03.2012 would be available only to pumps primarily designed to handle water falling under CETI 8413 7010 and not to such pumps classifiable under CETI 8413 7095, is contrary to the factual position and is not legally sustainable, as the chapter heading 8413 alone has been mentioned in the column (2) of the said entry. Therefore, the case laws relied upon by the learned Principal Commissioner is also not relevant for interpretation of the above exemption entry of the notific....
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.... is that it should be a pump driven by power, which can be an IC engine or an electric motor or some other source of power. A pump which is designed to handle the water and is power driven viz. it could be a mono block pump where the pump and electric motor are integral parts of the pump set or a pump set where the provisions are made for fitting an electric motor can be considered as power driven pumps even when the source of power is not fitted. Quite often, the customer purchases only pumps from the manufacturer independently. In such cases, a pump purchased by him does not become a non-driven power pump just because the customer bought it without a motor." 11.2 We also find that in the case of WPIL Limited (supra) involving identical facts of the present case, the Co-ordinate Bench of the Tribunal in Final Order No. 76144/2025 dated 25.04.2025 have held that the centrifugal pumps are classifiable under Tariff Item 8413 7010 and are eligible for the benefit of Notification No. 12/2012- C.E. dated 17.03.2012 (Sl. No. 235). The relevant paragraphs of the said order are extracted below: "7. We observe that the issue involved in the case is whether the goods in question,....