Mineral water classification turned on treatment and added mineral salts, bringing the product within excisable tariff entry before 16-3-1995.

Mineral water marketed as "Trupthi" was treated as excisable and classifiable under sub-heading 2201.90 for the period before 16-3-1995 because the manufacturing process involved chlorine treatment, addition of calcium carbonate and other chemicals, mineral adjustment, filtration and ultraviolet radiation before bottling. The Board's 20-12-1994 circular was applied to distinguish treated water with added mineral salts, which fell within mineral water, from merely clarified or purified water, which did not. The majority view held that the product met that tariff description even before Chapter Note 2 in Chapter 22 was inserted; the contrary view denying dutiability before 16-3-1995 was not accepted.

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Issues: Whether mineral water marketed as "Trupthi" was excisable and classifiable under sub-heading 2201.90 for the period prior to 16-3-1995.

Analysis: The product was prepared by chlorine treatment, addition of calcium carbonate and other chemicals, mineral adjustment, filtration and ultraviolet radiation before bottling. The Board's circular of 20-12-1994 clarified that treated water with added mineral salts would be mineral water and would attract duty under sub-heading 2201.90, whereas merely clarified or purified water would not. On the majority view, the process adopted by the assessee brought the product within that clarification and within the tariff entry even before insertion of Chapter Note 2 in Chapter 22. The contrary view that the goods were non-excisable prior to 16-3-1995 was not accepted.

Conclusion: The appeal was allowed on merits and the assessee succeeded on the question of dutiability and classification for the relevant period.

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