Diameter restriction under water-pipe exemption cannot be imported into clause 7(2), preserving the exemption for qualifying pipes.

The minimum 20 cm outer-diameter condition in clause 7(3) of Notification No. 6/2006-C.E., as amended, does not govern pipes covered by clause 7(2). Clause 7(2) applies specifically to pipes used for delivery of water from the source to the plant and from there to the first storage point, while clause 7(3) separately addresses pipes exceeding 20 cm that form an integral part of water supply projects. Because the two clauses operate in different fields, the diameter restriction cannot be read into clause 7(2). Where the required certificate under condition No. 4 is produced, exemption remains available under clause 7(2).

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Issues: Whether the minimum 20 cm diameter restriction in clause 7(3) of Notification No. 6/2006-C.E., as amended by Notification No. 6/2007-C.E., applies to pipes covered by clause 7(2) as well.

Analysis: Clause 7(2) specifically covers pipes needed for delivery of water from its source to the plant and from there to the first storage point, while clause 7(3) separately refers to pipes of outer diameter exceeding 20 cm when such pipes form an integral part of water supply projects. The two sub-clauses operate in different fields, and the diameter condition in clause 7(3) cannot be read into clause 7(2). The requirement of a minimum diameter therefore does not control the exemption available under clause 7(2), especially when the requisite certificate under condition No. 4 was produced.

Conclusion: The diameter restriction does not apply to pipes covered by clause 7(2), and the assessee was entitled to the exemption.

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