Power Driven Pumps for water SSI Exemption extended, Government amends an amending notification
Notification 8/2006-C.E., dated 1-3-2006 amended Notification No. 8/2003 dated 1-3-2003 this is a SSI notification. By Notification No. 8/2006 the Annexure to the notification was changed from a negative list to a positive list. Vide serial no. (xl) of the list, all goods falling under chapter 84 are covered under the SSI exemption. But this (xl) was to undergo a change from 1st April, 2006 and was to read as
"(xl) all goods falling under Chapter 84 {other than power driven pumps primarily designed for handling water which do not conform to standards specified by BIS (Bureau of Indian Standards) for such pumps}.
This would mean that these power driven pumps designed for handling water not conforming to the BIS standards – the standards are for pumps and not water – are not eligible for the SSI exemption from 1-4-2006. Now the government has amended the notification to deny the exemption from 1st August, 2006. The exemption is extended for four months. Board knows why.
But technically the notification is wrong. This notification amends Notification No. 8/2006 which itself amended Notification No. 8/2003. Once notification 8/2006 has amended notification 8/2003 it ceases to exist. Government should have amended Notification No. 8/2003 instead of 8/2006.
Notification No. , Dated March 30, 2006