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Circular No. 224/58/96-Central Excise

dated 26/6/96
F.No. 154/16/94-CX.4

Government of India

Ministry of Finance

Department of Revenue

Subject: CE- Classification and excitability of Power Driven Pump Sets for handling water – Regarding…

I am directed to say that Confederation of Indian Industry has pointed about divergence in practice of classification of power driven pump sets for handling water. A.P.D. pump set may be a pump having an inbuilt prime mover designed and built as a complete unit, called a monoblock pump-set, or a pimp and a prime mover being two separable units whether complied or not put/ intended to be put on a common platform. It has been represented that it is classified in some Comkmissionerates under Chapter Heading 84.13 extending 46/94 dated 1.3.94) either fully or partially whereas, other Commissionerates are classifying this product under Chapter Heading 84.79 thereby denying the benefit of exemption.

2. The matter has been examined in depth. Board in its F.No. 151/13/92-CX.4 (Pt.) (Circular No. 11 /11/94 dated 2.2.94) has held that electric motors or rotors or stators are component parts of P.D. Pumps. following the same analogy, the prime mover, i.e. I.C. Engine may be treated as an integral part of P.D. Pump. The Board takes note of Note 3 of Section XXI 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-seading 84.13.

3. Hence, the Board is of the view that Power Driven Pump Sets are classifiable under Chapter Heading 84.13 and if such Power Driven Pump Sets are primarily meant for handling water, the benefit of Notification No. 56/95 dated 16.3.95 will be admissible to the whole pump set.

Sd/-
(Sanghamitra Panda)
Deputy secretary to the Govt. of India

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