1998 (9) TMI 619

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....bsp; 2.. The case of the petitioner is that the petitioner purchases methyl alcohol from different distilleries and also from the open market and dilute the same by adding water in an exact proportion, i.e., 43.8 volumes of methonol and 56.2 volumes of distilled water at a temperature of 16.60° F and 10.0° C or alternatively, a minimum of 36 per cent and a maximum of 38 per cent by weight of methonol in water. According to the petitioner, the said mixture of methonol and water is used for specific purpose for taking off of the aeroplanes. Such water is tested in laboratory for strict adherence to quality and proportion thereof at a particular temperature. By the said process a new product comes into existence which is used only f....

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.... 471, wherein the Bombay High Court has been pleased to hold that methonol mixed with distilled water in certain proportion, tested in the laboratory and sold it for specific purpose of using it as a power augmentation to it mainly in aeroplane engines for the purposes of take-off brings into existence a new product commercially and that should be considered manufacturing of a new product. 5.. Mr. Bharat Ji Agrawal cited another decision in the case of Commissioner of Sales Tax v. Chandausi Chemicals, Moradabad 1984 UPTC 1278 where the distilled water used in injection is considered to be a new product and not water simpliciter.   6.. I have considered the submissions of the revisionist and the respondent carefully. The Bombay de....