{"id":68380,"date":"2008-03-12T00:00:00","date_gmt":"2008-03-11T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chennai-petroleum-corporation-vs-cce-on-12-march-2008"},"modified":"2017-12-23T09:45:57","modified_gmt":"2017-12-23T04:15:57","slug":"chennai-petroleum-corporation-vs-cce-on-12-march-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chennai-petroleum-corporation-vs-cce-on-12-march-2008","title":{"rendered":"Chennai Petroleum Corporation &#8230; vs Cce on 12 March, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Customs, Excise and Gold Tribunal &#8211; Tamil Nadu<\/div>\n<div class=\"doc_title\">Chennai Petroleum Corporation &#8230; vs Cce on 12 March, 2008<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2008 (129) ECC 171, 2008 (155) ECR 171 Tri Chennai, 2008 (227) ELT 446 Tri Chennai<\/div>\n<div class=\"doc_bench\">Bench: P Chacko, K T P.<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>   P.G. Chacko, Member (J)  <\/p>\n<p>1. These appeals of the assessee are against demands of duty on what is called &#8216;demineralized water&#8217; [DM water, for short], for the periods August 2000 to March 2001 and April 2001 to September 2001. During the periods of dispute, DM water was prepared by a process of purification in the assessee&#8217;s factory, used in boilers for generation of steam, this steam was used to run a turbine for generation of electricity, a major part of this electricity was captively consumed in the manufacture of final products in the factory and the remaining portion of the electricity was supplied to the TNEB (Tamilnadu Electricity Board) grid. On these facts, the lower authorities classified DM water under SH 2851.19 of the First Schedule to the Central Excise Tariff Act after rejecting the assessee&#8217;s claim for classification of the item under SH 2851.11. The impugned demand of duty is consequential to this classification. The relevant part of the text of the Tariff entry is extracted hereunder:\n<\/p>\n<p>Heading<\/p>\n<p>Sub-Heading<\/p>\n<p>Description of goods<\/p>\n<p><span class=\"hidden_text\">(1)<\/span><\/p>\n<p><span class=\"hidden_text\">(2)<\/span><\/p>\n<p><span class=\"hidden_text\">(3)<\/span><\/p>\n<p>28.51<\/p>\n<p>\u00a0<\/p>\n<p>Other inorganic compounds (including<\/p>\n<p>distilled or conductivity water and water<\/p>\n<p>of similar purity); liquid air (whether or<\/p>\n<p>not rare gases have been removed);\n<\/p>\n<p>compressed air; amalgams, other than<\/p>\n<p>amalgams of precious metals<\/p>\n<p>&#8211; Distilled or conductivity water and water<\/p>\n<p>of similar purity:\n<\/p>\n<p>\u00a0<\/p>\n<p>2851.11<\/p>\n<p>&#8211; Used within the factory of production<\/p>\n<p>\u00a0<\/p>\n<p>2851.19<\/p>\n<p>&#8212; Others<\/p>\n<p>2. Learned Counsel for the appellants has submitted that it is not in dispute that DM water was used within the factory of production. Learned Jt. CDR has not contested this submission of the counsel. He, however, submits that a part of the electricity generated by the process involving DM water was used outside the factory of production. In other words, learned Jt. CDR reiterates the logic adopted by the lower authorities.\n<\/p>\n<p>3. We find that it is not in dispute that DM water is classifiable under single &#8216;-&#8216; entry  &#8220;Distilled or Conductivity Water and Water of Similar Purity&#8221;.  The question now is whether it should be classified under SH 2851.11 [&#8211; Used within the factory of production] or under SH 2851.19 [&#8211; Other]. If DM water was used within the factory of its production, it should be classified only under SH 2851.11. Admittedly, it was used within the factory of its production and accordingly it has to be classified appropriately under SH 2851.11 attracting &#8216;nil&#8217; rate of duty.\n<\/p>\n<p>4. In the result, the demand of duty is set aside and these appeals are allowed.\n<\/p>\n<p>(Dictated and pronounced in open court)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Gold Tribunal &#8211; Tamil Nadu Chennai Petroleum Corporation &#8230; vs Cce on 12 March, 2008 Equivalent citations: 2008 (129) ECC 171, 2008 (155) ECR 171 Tri Chennai, 2008 (227) ELT 446 Tri Chennai Bench: P Chacko, K T P. ORDER P.G. Chacko, Member (J) 1. These appeals of the assessee are against [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-68380","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chennai Petroleum Corporation ... vs Cce on 12 March, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/chennai-petroleum-corporation-vs-cce-on-12-march-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chennai Petroleum Corporation ... vs Cce on 12 March, 2008 - Free Judgements of Supreme Court &amp; 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