Description: They also contended that they had sold only packaged (purified) drinking water and that this water would fall under Entry 12 of Fourth schedule eligible for exemption. This Tribunal Held that on bare perusal of the excluded items of water i.e., Mineral water sold by the appellants, as forms is not taxable. The purified drinking water sold by the appellants, as admitted by the appellate Deputy Commissioner, can be brought under Central Excise Act, but cannot be brought under Entry 12 of IV Schedule of the APGST Act for the simple reason had the process involved in bringing out packaged(purified) drinking water sold by the appellants amount to manufacture. Various processes engaged by the appellants amount only purification of water by removal of water and sterilized of water by ultra violet radiation. (Decisions of Supreme Court in State of Maharastra Vs. Mahalaxmi Stores, 129 STC 79. (SC), Deputy Commissioner of Sales Tax (law), Board of Revenue (Taxes), Ernakulam V. Pio Food Packagers, 46 (SC) Divisional Deputy Commissioner of sales tax and another V.Bherhaghat Mineral Industries 120STC205 (SC).
Source: Trade and Taxes volume no 18. Part no.3 march 2011. Page no. 140.
Our Comment: Mineral Water plants are covered under Central Excise but under AP VAT.
