ORDER
C. Satapathy, Member (T)
1. Heard both sides. The demands are in respect of treated water, demineralised water as well as the inputs used in the production of steam. Such water and steam are supplied to the Heavy Water Plant which has been set up by the Department of Atomic Energy, Government of India. The learned advocate for the appellants submits that in view of earlier decisions of the Tribunal in the following cases, treated water and demineralised water are not dutiable :-
(i) MEPC Agro Foods Ltd. v. CCE, Coimbatore 2001 (135) ELT 1352 (T-Chennai); and
(ii) CCE, Cochin v. Kerala State Drugs & Pharma Ltd. 2001 (132) ELT 705 (T-Bang.)
He also states that earlier a demand notice dated 3.1.2002 was issued but the same was dropped by the previous Commissioner. The learned advocate also states that the Atomic Energy Department of the Government of India, to whom the impugned goods have been supplied, has not paid the appellants any amount towards the duty and have informed that they have taken up the matter with the Finance Ministry for grant of specific exemption on these items in case they are considered to be dutiable.
2. We have heard the learned JDR who supports the impugned orders.
3. After hearing both sides and perusal of case records including the cited case laws, we are of the view that the appellants have a, prima facie, case in their favour. The impugned goods have also been supplied to a unit of the Atomic Energy Department who have taken up the matter with the Ministry of Finance for grant of specific exemption to these goods. As such, we waive the requirement of pre-deposit and fix the regular hearing of the case on 25.10.2004.
(Pronounced in Court)