Tribunal Rules 'Treated Pure Water' Not Mineral Water: Revenue Appeal Rejected

The Tribunal upheld the decision of the Commissioner of Central Excise (Appeals) and rejected the Revenue's appeal regarding the classification of 'Treated Pure Water' under Heading No. 2201.90 of the Central Excise Tariff. The Tribunal found that as no mineral salts were added to the water during the purification process, the product could not be classified as mineral water. Despite the Revenue's argument about the testing of the water used, the Tribunal determined that the product did not meet the criteria for classification as mineral water and therefore was not dutiable under the Central Excise Tariff.

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Issues: Classification of the product 'Treated Pure Water' u/s Central Excise Tariff.

Summary:
The appeal filed by the Revenue concerned the classification of 'Treated Pure Water' under Heading No. 2201.90 of the Central Excise Tariff. The Commissioner of Central Excise (Appeals) had initially held that the goods were not excisable based on a Board's Circular. The Revenue argued that the processes undertaken by the respondents classified the product as mineral water, thus making it dutiable. On the other hand, the respondents contended that no minerals were added during the purification process, and the product remained water. The process of manufacture involved treating the water with various substances to purify it, without adding any mineral salts. The Board's Circular clarified that if mineral salts were added to the treated water, the product would be considered mineral water and liable to duty. However, as no mineral salts were added to the Treated Water in question, it could not be classified as mineral water under sub-heading 2201.90 of the Central Excise Tariff.

The Revenue also raised a point regarding the testing of the water used for the finished products. Despite this, since there was no dispute about the process of manufacture as documented, the Tribunal did not find merit in this argument. Considering the Board's Circular and the established facts, the Tribunal upheld the decision of the Commissioner of Central Excise (Appeals) and rejected the Revenue's appeal.

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