LexM/S. PAHARPUR COOLING TOWERS PVT. LTD. CALCUTIA versus COLLECTOR OF CENTRAL EXCISE, CALCUTTA
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A
M/S. PAHARPUR COOLING TOWERS PVT. LTD. CALCUTIA
v.
COLLECTOR OF CENTRAL EXCISE, CALCUTTA
MARCH 22, 1995
B
[R.M. SARAI AND S.B. MAJMUDAR, JJ.)
Central Excise Tariff:
Item 33(2)-Hub with blades known as 'Blade Assembly' used in
C cooling towers-Whether electric fan are assessable under Item 33(2)-Held:
·No.
The appellant was constructing cooling towers on contract. It pur-
chased hubs and blades from the market, assembled them and faxed them
in the cooling towers. The fans were mounted on the shaft of the motors.
D When the fans were removed from the appellant's factory, it did not have
any electric motor or any other kind of device to generate electricity. The
Tribunal held that since cooling towers are part of thermal electric
generating station, such a station is part of an industrial system and the
fans used in it were nothing but electric fans. This finding has been
J? . challenged in these appeals.
Allowing the appeals, this Court.
HELD: 1. The hub with blades known as 'Blade Assembly' was not
F an electric fan as assessable under Item 33(2). {935-G]
2.1. A very reading of the Entry under item 33(2) of the Central \_,,_.1
Excise Tariff indicates that any item to be assessable under this Entry
must satisfy the basic characteristics of being an electric fan. The descrip-
-t--· -
tion about use, its indispensability and shape is to widen the ambit of the
G Entry but it would apply to such goods which are electric fan&. Once any·
good satisfied the basic characteristics then its shape etc. would be im-
material. But if the good is not electric (an then merely because it was
~
designed for industrial use as electriC fan would not render it an electric
fan. The Entry is not electric fan or any fan capable of being used as
H electric fan. In fact the word 'as' has been used before the expression,
934
}
PAHARPURCOOLG.v. C.OFCENTRALEXCISE
935
'parts indispensable for its operation'. Therefore, the duty under this Item A
is attracted on such electric fans which are not only designed for use in an
industrial system but are indispensable for its operation. (936-E-FJ
2.2 The entry has to be read both widely and narrowly. Widely as any .
good designed for use as mentioned irrespective of shape would be taxable B
under this Entry. Narrow because it must be electric fans. The Tribunal
determined the leviablity by the latter part. But that was not sufficient. The
good must be electric fan and such fan must have been designed for use
in an industrial system as part indispensable for its generation. The
appellant had purchased bub and blades and assembled them. They were
taken out from the factory in the same condition. No electric device to C
generate electricity was attached to it. Therefon, even if such assembly was
fan it could not be held to be electric fan. (936-G-H]
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 1523-24
of 1986.
From the Judgment and Order 28.2.86 of the Customs Excise and
Gold (Control) Appellate Tribunal, New Delhi in A.Nos. ED (SB)
D
~-
(T)/686/80-BI and ED (SB)(T)/190/82-BI.
r- .)
C.S. Vaidyanathan, KV. Viswantha and KV. Venkataraman with E ·
him for the Appellant.
Joseph Vellapally, A. Sobba Rao and (V.K Varma Adv.) for Ms.
Sushma Suri· with him for the Respondent.
The following Order of the Court was delivered:
p
The question that arises for consideration in these appeals is whether
hub with blades called by Paharpur Cooling Towers as 'Blade Assembly'
was an "electric fan" assessable under Item 33(2) of Central Excise Tariff.
The Tribunal itself found that the appellant purchased hubs and G
blades from the market, assembled them and fixed them in cooling towers
which they constructed on contracts. It further found that when the fans
were removed from the appellant's factory it did not have nay electric
motor or any other kind of device to generate electricity. The fans were
mounted on the shaft of the motors. But it held that most of the industrial H
936
SUPREME COURT REPORTS
-~
(1995) 2 S.C.R.
A fans are like that, therefore, it could not be held that such fans were not
B
c
D
electric fans merely because they had no electric motors integrally built in
~-
it. The Tribunal held that since cooling towers are part of thermal electric
generating station, therefore, such a station is part of an industrial system
and the fans used in it was nothing but electric fan.
Relevant Entry reads as under:
"Item 33(2):
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