1995 INSC 0339
                                  Paharpur Cooling Towers Pvt. Ltd., Calcutta

                                                           Vs

                                      Collector of Central Excise, Calcutta

                                       Civil Appeals Nos. 1523-24 of 1986

                                        (R. M. Sahai, S. B. Majumdar JJ)

                                                      22.03.1995

                                                        ORDER

1. 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.

2. The Tribunal itself found that the appellant purchased hubs and 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 any 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 fans are like that, therefore, it could not be held that
such fans were not 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.

3. Relevant entry reads as under :

                  #"Item Description of goods Rate of duty33.(2) Electric fans, designed for use in an
                  Fifteen per cent industrial system as parts indispensable ad valorem for its operation
                  and have been given for that purpose some special shape or quality which would not
                  be essential for their use for any other purpose, and regulators therefor."##

4. A very reading of the entry indicates that any item to be assessable under this entry must satisfy
the basic characteristics of being an electric fan. The description about use, its indispensability and
shape is to widen the ambit of the entry but it would apply to such goods which are electric fans.
Once any good satisfied the basic characteristics, then its shape etc. would be immaterial. But if the
goods is not electric fan then merely because it was designed for industrial use as electric fan would
not render it electric fan. The entry is not that electric fans or any fan capable of being used as
electric fan. In fact the word 'as' has been used before the expression, "parts indispensable for its
operation". Therefore, the duty under this item is attracted on such electric fans which are not only
designed for use but are indispensable for its operation. The entry has to be read both widely and
narrowly. Widely as any goods designed for use as mentioned irrespective of shape would be
taxable under this entry. Narrow because it must be electric fans. The Tribunal determined the
leviability by the latter part. But that was not sufficient. The goods must be electric fan and such fan
must have been designed for use in an industrial system as parts indispensable for its generation.
The appellant had purchased hub and blades and assembled them. They were taken out from the
factory in the same condition. No electric device to generate electricity was attached to it.
Therefore, even if such assembly was fan it could not be held to be electric fan.

5. In the result, the appeals succeed and are allowed. The orders passed by the Tribunal, Collector
and Assistant Collector are set aside. The question of law is decided by saying that the hub with
blades known as "Blade Assembly" was not an electric fan as assessable under Item 33(2). Parties
shall bear their own costs.

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