Inconclusive chemical test report cannot justify reclassification of treated water as mineral water; Revenue's challenge failed.

Classification as mineral water could not be sustained where the Deputy Chief Chemist's report was only tentative and stated that minerals "appear" to have been added after demineralization. Such an inconclusive report was insufficient to establish, with certainty, that the goods marketed as treated water were mineral water. As the Revenue failed to provide a clear and definite test basis for reclassification, the impugned order was found to suffer from no infirmity and the Revenue's appeal was dismissed in favour of the assessee.

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Issues: Whether the goods manufactured and marketed as treated water were liable to be classified as mineral water on the basis of the Deputy Chief Chemist's report.

Analysis: The classification dispute turned on the chemical test report relied upon by the Revenue. The report only stated that it "appears" that some minerals had been added after demineralization. Such an opinion was not definite and did not conclusively establish that the goods were mineral water. In the absence of a clear and certain test report, the basis for reclassification failed.

Conclusion: The goods were not shown to be classifiable as mineral water on the strength of the report, and the impugned order suffered from no infirmity. The Revenue's appeal was dismissed in favour of the assessee.

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