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2019 (3) TMI 944 - CESTAT AHMEDABADSupply of Expansion Bellow which is used as joints for the pipes from the source of water to water treatment plant - N/N. 3/2004-CE dated 08.01.2004 - case of the department is that since the Expansion Bellow is not part of water treatment plant nor it is pipe and the same is used for jointing the pipes while laying the pipeline, therefore it is not covered under the said notification - Held that:- There is no dispute between the assessee and the Revenue inasmuch as the goods namely Expansion Bellow was used as joints while laying pipeline from source of water to water treatment plant. From the notification, it is clear that either the goods should be water treatment plant and its instrument, parts apparatus and appliances, auxiliary equipment and components/parts of water treatment plant and as per the description at serial No. 2, pipelines for delivery of water from its source to the plant. However, in the present case, Expansion Bellow is not part of water treatment plant and therefore, it is not covered in description serial No. 1 and it is also not a pipe which can be covered under serial No. 2 - thus, the Expansion Bellow which is neither part of the water treatment plant nor it a pipe, it is therefore, not eligible for exemption. Penalty - Held that:- Since the issue relates to interpretation of the notification, there is no malafide on the part of the appellant - penalty set aside. Benefit of cum-duty price - Held that:- Since exemption has been denied, the duty should be recomputed considering the cum-duty benefit as held by the Hon'ble Supreme Court in the case of CCE, Delhi vs. Maruti Udyog Limited [2002 (2) TMI 101 - SUPREME COURT]. Therefore, the Adjudicating Authority should re-calculate the duty by considering the benefit of cum-duty. Appeal allowed in part and part matter on remand.
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