2014 (3) TMI 973

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....g that the machinery manufactured by the Appellant does not aid in the production of a commercial commodity, namely soft water and that therefore the Appellant is not entitled the benefit of Notification No. 46 of 1994 dated 1-3-1994 and Notification No. 56 of 1995 dated 16-3-1995?" 2. The controversy in issue is whether the machinery ESWTU, (Electro Static Water Treatment Unit), that is being manufactured by the appellant under the name and style of Scalemaster is capable of production of a commodity? What is being manufactured by the appellant is 'machinery' is not in dispute. The machinery of Scalemaster is used in the process industry and useful in eliminating chemicals and scaling, enhancing heat transfer and producing treated ....

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....a commodity, distinctly recognised as treated water has not been considered by the authorities concerned and no finding contra has been given either. 3. Having considered the rival submissions, we see reason in the arguments of the learned counsel for the appellant that as in the present day of outsourcing every aspect of industrial activity we can visualise a situation wherein a user industry may contract out supply of treated water of a specified quality, which in turn may be useful in the user industry. If such possibility exists, if the contention of the appellant is to be accepted that the machinery as being manufactured by them is capable of converting hard water into soft water and water laden with minerals, impurities into u....