2001 (6) TMI 96

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.... - This appeal has been filed by Revenue, as the respondents were alleged to have manufactured and during the period 1-12-1989 to 30-11-1994 cleared, Demineralised Water and Soft Water to another unit of theirs on debit notes instead of invoice. 2. On adjudication, the Commissioner observed …… "On going through the process to which the water is subjected to manufacture, it is clear that ....

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....r and soft water prepared by them would be more appropriately classifiable under Heading 2201.00 of CET." Accordingly he held that the goods under dispute were not dutiable under Heading 2851.00 of CET and dropped the show cause notice. 3. Revenue has filed the appeal on the grounds :- (i) From Report of Range Officer it was clear that Soft Water is only partially purified, where cations ....

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....00, the Heading covers "Distilled water, re-distilled water or electro-osmotic water, conductivity water and the water of similar purity, including water treated with ion exchange media." Therefore, the correct classification of soft water obtained by treating through cation exchanger will be TSH 2851.00. Demineralised water is also classifiable under 2851.00 as it undergoes ion exchange method to....

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....be eligible for classification under T.I. 2851.00, the decision in the case of Gujarat State Fertilizers Ltd., 1998 (98) E.L.T. 840 (T) would be relevant and was considered by the Tribunal in the case of McDowell & Co. Ltd., - 1999 (105) E.L.T. 577 (T) to come to a conclusion that mere process of removing two minerals viz Calcium and Magnesium and making water soft, does not amount to manufacture ....