Exemption for aerated waters under a franchise arrangement was upheld by applying prior ruling on similar bottling facts.

Exemption under Notification No. 82/74 was held applicable to the manufacture of aerated waters under a franchise arrangement where essence was purchased from the trademark owner, because the appellate authority followed an earlier Government of India order dealing with a similar bottling arrangement and treated that reasoning as controlling on the facts. The denial of exemption was set aside and the assessee's appeal was allowed.

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Issues: Whether the benefit of Notification No. 82/74 dated 01-05-1974 was available to the manufacture of aerated waters under a franchise arrangement involving purchase of essence from the trademark owner.

Analysis: The appellate authority noted that the question had already been decided by the Government of India in a prior order concerning a similar bottling arrangement and concluded that the exemption was applicable on the facts of the case.

Conclusion: The denial of exemption was set aside and the appeal was accepted in favour of the assessee.

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