1999 (8) TMI 221 - AT - Central Excise

Summary

Issues:
- Interpretation of Notification No. 155/86-C.E. regarding the entitlement of water filters to nil rate of duty.
- Classification of water filter as an on-line attachment affecting duty exemption eligibility.

Analysis:
1. The appeal was filed against an order denying the benefit of Notification No. 155/86-C.E. to water filters produced by the appellants, citing the filters as on-line attachments.
2. The appellants argued that the water filter's capacity did not exceed the limit specified in the notification, referring to a similar product benefiting from the notification in a previous case.
3. The Respondent contended that the filter in question did not meet the capacity criteria set in the notification.
4. The central issue was whether the water filters produced by the appellants qualified for the exemption under Notification No. 155/86-C.E.
5. The notification exempted water filters not exceeding 40 litres from duty, without specifying any exclusion for on-line filters.
6. Relying on a previous Tribunal decision regarding a similar product, the Tribunal held that the appellants' water filters were entitled to the benefit of the notification.
7. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellants.