Mineral water was not treated as aerated water and remained outside sales tax under the exemption notification.

Mineral water was held not to fall within the expression "aerated water" in entry 95 of the Rajasthan sales tax notification, because aerated water means water charged with air or gas and showing effervescence, while mineral water was found to be sold as potable drinking water without added gas or chemical content. The Court applied the commodity's ordinary commercial identity and the exemption language, which covered water other than distilled water and aerated water. On that basis, mineral water remained outside the taxable entry and was not subject to sales tax under entry 95.

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Issues: Whether mineral water is aerated water so as to fall within entry 95 of the notification issued under section 5 of the Rajasthan Sales Tax Act, 1954 and thereby attract sales tax, or whether it remains exempt as drinking water.

Analysis: The relevant exemption covered water other than distilled water and aerated water. Distilled water was understood as water subjected to distillation, while aerated water was understood in commercial and dictionary sense as water charged with air or gas and producing effervescence. The finding accepted by the Tribunal was that mineral water was not manufactured by adding gas or any other chemical and did not contain effervescence. The Court held that taxability had to be tested by the commodity's ordinary commercial identity and not by an extended meaning of the exempting exception. Since mineral water was sold as potable drinking water and did not answer the description of distilled or aerated water, the Revenue could not bring it within the taxable entry.

Conclusion: Mineral water is not aerated water for the purpose of the notification and does not attract sales tax under entry 95; the revision petitions therefore fail.

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