Water filter exemption under nil-duty notification upheld for on-line tap-fitted filters lacking separate storage tank

The notification granted nil duty to water filters of capacity not exceeding 40 litres and did not require a minimum capacity, separate storage tank, or separate candles. An on-line water filter directly fitted on taps was not excluded from the exemption merely because its capacity could not be measured in the manner suggested by the lower authorities. The denial of exemption was therefore unsustainable, and the water filter qualified for the benefit of the notification.

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Issues: Whether the water filter manufactured by the appellants was entitled to the benefit of Notification No. 155/86-C.E. dated 1-3-1986.

Analysis: The notification granted nil rate of duty to water filters of capacity not exceeding 40 litres and did not prescribe any minimum capacity or require a separate storage tank or separate candles. The product was an on-line water filter directly fitted on taps, and the Tribunal followed its earlier view that such filters were not excluded from the exemption merely because their capacity could not be measured in the manner suggested by the lower authorities.

Conclusion: The denial of exemption was unsustainable and the water filter was entitled to the benefit of the notification.

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