TaxTMI 
TaxTMI 
2019 (3) TMI 660
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....xcise, Thane-I. 2. Briefly stated the facts of the case are that pursuant to the Audit conducted, it was noticed that the appellant had availed benefit of exemption Notification No. 47/2002 CE dated 06.09.2002 as amended and Notification No. 6/2006-CE dated 01.03.2006 (Sr.No.7) in respect of manufactured "pipes" and "pipe fittings" falling under chapter heading 73070000 CETA, 1985. Alleging that the benefit of exemption is admissible only to 'pipes' and not to 'pipe fittings' show cause notice was issued to them for recovery of the duty amounting to Rs. 11,70,61,514/- alongwith interest and penalty. On adjudication the Learned Commissioner dropped the demand of Rs. 6,25,26,885/- and confirmed the duty demand of Rs. 5,45,34,629/- wi....
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.... time they have been meticulously disclosing clearance of pipes and pipe fittings by availing the said exemption notification. Also, the appellant have been discharging 10% of the value of the exempted pipes and pipe fittings under Rule 6(3) of CCR, 2004 since common inputs were used in the manufacture of exempted pipes and pipe fittings and dutiable pipes & pipe fittings. It is his contention that therefore invoking larger period of limitation and also penalty under section 11AC of CEA, 1944, cannot be sustained. 4. Per contra, Ld. AR for the Revenue submits that in the exemption Notification 6/2006 CE dated 01.03.2006 there is no mention at Sr. No. 196A, the expression 'pipe fittings'. The exemption was allowed only in case of &#....
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.... 06/2002-CE dated 01.03.2002 as amended and also under Notification No. 6/2006 CE dated 01.03.2006 for the respective period. The dispute relates to applicability of exemption under the aforesaid notifications to the 'Pipe fittings'. To appreciate the rival contention, it is necessary to reproduce the relevant notification which read as below: Notification NO. 6/2002 CE dated 01.03.2002 amended as S. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate under the First Schedule Rate under the Second Schedule Condition No. (1) (2) (3) (4) (5) (6) 196A 84 or any other Chapter The following goods, namely:- (1) All items of machinery, including instruments, appara....
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.... for setting up of water treatment plants; (2) Pipes needed for delivery of water from its source to the plant and from there to the storage facility. Explanation.- For the purposes of this exemption, water treatment plants includes a plant for desalination, demineralization or purification of water or for carrying out any similar process or processes intended to make the water fir for human or animal consumption, but does not include a plant supplying water for industrial purposes. Nil 47A Condition No. Conditions 4. If, a certificate issued by the Collector/District Magistrate Deputy Commissioner of the District in which the plant is located, is produced to the Deputy Commissioner of Central Excise or the Assistant Commissioner of....
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....gwith the word 'pipe' in the relevant entry of the said notification. The Learned Advocate for the appellant referring to the judgment of Bharat Forge and Press India Pvt. Ltd.'s case (supra) vehemently argued that the Hon'ble Supreme Court in the context of examining the Tariff item 26AA and residuary Tariff item 68 of the erstwhile First Schedule to Central Excise Act, 1944 held that there is no difference between pipes and pipe fittings while examining the scope of the expression "all sorts". The said interpretation in our view cannot be made applicable to the facts and circumstances of the present case where the issue relates to extending of the benefit of exemption notification. Thus, on merit, we do not find any reason....