Tariff classification of treated water required laboratory testing before fresh adjudication and reassessment of product nature.

Classification of treated water under the relevant tariff entry could not be resolved conclusively on the existing record because the product description and explanatory HSN note were insufficient. A departmental laboratory test was considered necessary to verify the nature and purity of the product, and the earlier adjudication was defective for proceeding without such testing. The impugned order was set aside and the matter was remanded for laboratory examination and fresh adjudication, with the report to be supplied to the assessee and further evidence permitted before a new decision.

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Issues: Whether the dispute regarding classification of treated water under the relevant tariff entry should be remanded for a laboratory test and fresh adjudication.

Analysis: The product description and the explanatory note to the corresponding HSN entry were considered insufficient to resolve the controversy conclusively on the existing record. A departmental laboratory test was found necessary to verify the nature and purity of the product. Since the existing adjudication had proceeded without such test, the matter required reconsideration after furnishing the report to the assessee and allowing further evidence.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for laboratory testing and fresh decision after giving the assessee an opportunity to respond and adduce evidence.

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