TMI Blog2008 (8) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Sudha Koka, SDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)].- This appeal has been filed against the Order-in-Appeal No. 92/2000, dated 15-9-2000 passed by the Commissioner of Central Excise (Appeals), Chennai. 2. Shri R. Raghavan, the learned Advocate, appeared on behalf of the appellant and Ms. Sudha Koka, the learned SDR, represented the Revenue. 3. We heard both sides. 4. The appellants are the manufacturers of pesticides. Revenue proceeded against them by issue of Show Cause Notice dated 19-11-1998 raising the demands in respect of four issues. The Joint Commissioner in his O-I-O No. 7/1999, dated 14-5-2007 dropped the demands proposed on tow issues and confirmed the demands in respect of other two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) 2001 (135) E.L.T. 1352 (Tri.-Ch.) - NEPC Agro Foods Ltd. v. CCE, Coimbatore 6.1 In the above decisions, the Hon'ble 'Tribunal has held that de-mineralised water would be classifiable under CH 2201.11. 7. The learned DR referred to CH 28.51 which reads as follows: 28.51 Other inorganic compounds (including distilled or conductivity water and water similar purity); liquid air (whether or not rare gases have been removed); compressed air; amalgams, other than amalgams of precious metals -Distilled or conductivity water and water of similar purity: 28.51.11 Used within the factory of production 28.51.19 Other Liquid air (whether or not any fraction has been removed) 28.51 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs 4395 10,636/- 2. 31-8-95 Loan to TAS, Ambattur 9966 24,118/- 3. 1-1-96 to 3-12-96 Storage loss, handling loss, etc. at TAS, Ambattur and Ennore Factory 154346 4,63,038/- 4. 10-3-97 Non-modvat closing stock cleared under dealers invoice passing on credit 3350 10,050/- 5. 1-1-97 to 25-10-97 In transit loss in respect of direct receipt of inputs at Ennore factory 2820 7,614/- 10. It was contended that the impugned product is highly volatile. The appellant has not contested the demand of service to Serial Nos. 2 and 4 of the above table. However, with regard to Serial Nos.1, 3 and 5 the loss is due to transit/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal decisions cited by the learned Advocate that demineralised water falls under CH 2201.11. There is no ruling setting aside these decisions. Therefore, we hold that the impugned item would be classifiable under 2201.11. Moreover, there is absolutely no justification for invoking the longer period. In these circumstances, the demand of duty of Rs. 81,110/- on demineralised water is set aside. The mandatory penalty on account of this is also set aside. 13. Coming to the irregular availment of Modvat credit, it is seen that the appellants have not contested the demand with reference to the input loaned, TAS Ambattur and also non-Modvat closing stock cleared under dealers invoice. These are in Serial Nos. 2 4 of the above-menti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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