Central Excise Appeal No.626 of 2008-DB, (Arising out of the order-in- original No.17-18/COMMR/2008 dated 30.1.2008 passed by the Commissioner of Customs& Central Excise, Rajkot). Case: C.C.& C.Ex, Rajkot Vs Sanghi Industries Ltd. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Central Excise Appeal No.626 of 2008-DB, (Arising out of the order-in- original No.17-18/COMMR/2008 dated 30.1.2008 passed by the Commissioner of Customs& Central Excise, Rajkot) |
| Counsel | For Appellant: Dr. J. Nagori, A.R. and For Respondents: Shri Anand Nainawati, Advocate |
| Judges | Dr. D.M. Misra, Member (Judicial) and Mr. Ashok K. Arya, Member (Technical) |
| Issue | Central Excise Tariff Act |
| Judgement Date | May 19, 2017 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
Ashok K.Arya, (West Zonal Bench)
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Revenue is in appeal against the Order-in-Original No. 17-18/COMMR/2008 dated 30.1.2008 passed by the Commissioner of Customs & Central Excise, Rajkot whereunder the Central Excise duty of Rs.44,83,752/- along with education cess of Rs.89,675/- has been confirmed against the Respondent M/s Sanghi Industries Limited (SIL).
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The brief facts of the case are that
(i) The Respondent M/s SIL set up a manufacturing unit (Desalination Plant) producing mineral water and De- mineralized (DM) water.
(ii) This manufacturing unit namely Desalination Plant is away from clinker unit/grinding unit of the Respondent.
(iii) Desalination Plant is an independent and separate manufacturing plant.
(iv) De-mineralized water is classifiable falling under Chapter Heading 28.51 of Central Excise Tariff Act.
(v) During the course of manufacturing mineralized water from sea water, new excisable commodity as de-mineralized water falling under Chapter Heading 28.51 of Central Excise Tariff Act, 1985 @ of 16% ad valorem, emerges. The Revenue's stand in the appeal is that for use of DM water in assessees unit as per Notification No.67/95-CE dated 16.3.95, the Respondent is required to pay duty @ 16% which is on consumption of DM water for further manufacturing of mineral water which attracts nil rate of duty.
(vi) The Department issued two show cause notices No.18 & 19/2007 both dated 6.3.2007 for recovery of duty amounting to Rs.79,72,049/- and Rs.1,00,42,459/- respectively
(vii) The adjudicating authority vide impugned order held that DM water produced by the assessee Respondent is exempt up to 28.2.2005 as the same were used within the manufacturing plant for further process of making potable water and therefore, dropped the demand for the period prior to 1.3.2005 on merits.
(viii) The adjudicating authority vide impugned order further dropped the demand pertaining to the period March 2005 to February 2006 raised in the show cause notice No.19/2007 dated 6.3.2007 on the ground of limitation. However, the Department's stand is that both the show cause notices were issued on the same date i.e.6.3.2007 and served to the Respondent on the same date 8.3.2007, this case being based on suppression of facts, the demands are within limitation.
(ix) The Department is in appeal against the impugned order with the stand that demands for the period up to 28.2.2005 and for the period from March 2005 to February 2006 have wrongly been...
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