2008 (12) TMI 127

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....pumps. The demand stands raised against the appellant on two accounts:- First - that they are using name of foreign collaborator on the said pumps and as such, not entitled to the benefit of small scale exemption notification. Secondly - on the ground that they have supplied pumps for handling chemicals to their customers, under the guise of pumps for handling water, inasmuch as water handling pumps attracted nil rate of duty. 2. After hearing both the sides, we find that the first issue i.e. using the name of foreign collaborator can be disposed off on the basis of limitation. The demand confirmed against the appellant on the said ground is for the period for Oct. 1997 to Sep. 1998, whereas the show cause notice was issued on 10-1....

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....ustomer's end has revealed that the orders were placed for pumps for handling chemicals and liquids other than water, whereas, invoices were issued for pumps for handling water. Inasmuch as the water handling pumps attracted nil rate of duty, Revenue has raised and confirmed the demand by treating the said pumps as pumps for handling liquid other than water. 4. Shri J.C. Patel has strongly contested the above confirmation of demand. Elaborating on his arguments, it was pleaded that wherever pumps meant for handling chemicals other than water were cleared by them, they have paid appropriate duty on the same by raising Central Excise invoices to that effect. He submits that appellant is manufacturing power driven pumps primarily designed f....

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.... They have also produced purchase orders and indents specifying such pumps. As such, we are of the view that the Revenue's stand on the above issue is required to be upheld. However, we find that demand stands extended to the clearance where nothing is mentioned in the purchase order or in indents or in the statements of the buyers. As such, we are of the view that the demand on the above grounds is required to be confirmed only in respect of those clearances where either buyers have specified or indents and purchase order mentions to this effect. The benefit in respect of other clearances where no evidence is available is required to be extended to the appellant. Though the appellant has produced before us the chart showing the total clear....