2008 (3) TMI 110 - AT - Central Excise

DM water (demineralised water) - classified by the lower authority under SH 2851.19 against assessee s claim under heading 2851.11 issue arising in the present case is no different from the one which dealt with and held in favour of the assessee in the earlier case impugned good classifiable under sub heading 2851.11, attracting nil rate of duty demand not imposable by classifying it under the residual sub heading 2851.19, so order of lower authority is liable to be set aside

Summary

Issues:
1. Challenge against demand of duty on demineralised water (DM water) classified under SH 2851.19 of the Central Excise Tariff Act.
2. Penalty imposed on the appellant.

Analysis:
1. The appeal challenged a demand of duty on DM water classified under SH 2851.19 of the Central Excise Tariff Act for a specific period. The appellant argued that DM water should be classified under SH 2851.11, which attracts a 'nil' rate of duty. The tribunal referred to a previous case involving the same assessee where it was decided that DM water falls under SH 2851.11 as it is used within the factory of production. The tribunal agreed with this classification and set aside the demand of duty for the current appeal period, as the issue was found to be similar to the previous case.

2. The tribunal, in its Final Order, concluded that DM water should be classified under SH 2851.11 as it is used within the factory of production, and not under the residual subheading 2851.19. Therefore, the demand of duty and penalty imposed on the appellant were set aside, and the appeal was allowed. The decision was made after considering the arguments presented by both sides and the findings from a previous case involving the same issue.