2006 (11) TMI 428 - AT - Central Excise

Summary

Issues Involved: Duty demands on water sold under a brand name and classification of 'Widal' Testing under specific chapters

In this judgment by the Appellate Tribunal CESTAT, Ahmedabad, the duty demands have arisen on two grounds. The first issue pertains to the water sold by the appellant under the brand name 'Pure Water.' The appellant argues that they do not use a brand name, but the label only indicates the quantity of water, such as '5 ltrs. pure water,' which does not qualify as a brand name. The contention is that branded water is not subject to duty. The second demand concerns the classification of 'Widal' Testing under either Chapter Heading 38 at a nil rate of duty or under Chapter 30 at 16%. The appellant asserts that the testing involves using 'Salmonella Antigens,' which should be classified under Heading 30. Reference is made to a Stay Order by the Tribunal in a previous case for support.

The Tribunal finds merit in the appellant's contentions. It observes that the water containers in question only display a label indicating the quantity of water packed, without any use of a brand name. Regarding the 'Widal' Testing, it involves the use of microorganisms, which should be classified under Chapter 30 based on a previous Stay order issued by the Tribunal. Consequently, the Tribunal allows the stay application, halting the recovery process until the appeal is disposed of. The judgment is pronounced in open court by the Member (T) of the Tribunal.