TMI Blog2000 (3) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... bon; another chamber housing an ultraviolet lamp and a third chamber which contains electronic controls and a spout for releasing water. The water is first passed through the chamber containing the carbon where it is filtered to remove solid waste to deodorise item and to remove unwanted colours. It is then taken to the chamber containing ultraviolet lamp radiation and the lamp destroys microscopic bacteria and viruses present. The water is then ready for removal. 2. This unit is manufactured at Hyderabad and in Uttar Pradesh by the wholly owned subsidiary of the appellant M/s. AP Industrial Company Ltd. (APIC for short). APIC sends the unit to the appellant's warehouse. The appellant thereafter packs this article and second component tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle and hence deemed to be manufacture. 4. The contention raised by the advocate for the appellant is that the activity undertaken by the appellant does not amount to manufacture and that therefore the provisions of Note 6 are not attracted. He says that the product which is received by the appellant from APIC itself consists of filtration and purification units and is therefore perfectly capable of performing its final function of both filtration and purification without the addition of a pre-filter. The object of the pre- filter is only to ensure that partially filterered water is received by the other unit so that activated carbon which acts as a filtering element in the main unit can be used longer. Without the pre filter, having reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiny fraction, sales made by the appellant, include the pre filter. There is also no element of optionality. The customer is not at any time told that the pre-filter is not really essential for the operation of the equipment and he does not have an option to buy it without pre filter or later by it. This fact was not disputed. The unit advertised and offered for sale and sold to the customers at large is one i.e. having both the pre filter and the other unit. Therefore, what is sold by the appellant has as an essential component the pre filter. It is also not disputed that the pre-filter is connected to the other units by means of clamps and tube, clamps to hold it and tube to coming water from the pre-filter to the other unit as well as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit as a whole cannot be anything other than marginal. Pre-filter in any case cannot be described as being crucial to the functioning of the other unit. In other words, in the manner in which the unit manufactured by APIC is itself capable of performing the function of both filtration and purification although its efficiency in performing the function of purification may perhaps be increased by use of the pre-filter. 8. In these circumstances, the provisions of Note 6 to Section XVI will not apply. That Note would apply in a situation where an incomplete or unfinished product is converted into a finished or complete product by a particular activity which would then be manufacture. As we have concluded, the Aquaguard itself is not incomp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the Aquaguard cleared by AP Industrial Component Ltd. The Court confirmed the view of the Tribunal that the benefit of the notification would not be available to these goods for the reason that they both filtered and purified water. If at all, this judgment would show that the Tribunal had noted that Aquaguard cleared by AP Industrial Corporation (which as we have seen did not incorporate the pre-filter) carried out both filtration and purification otherwise than by filtration. This in fact runs directly counter to the Commissioner's view that the nature of the appliance is changed by use of the pre-filter to a filtration and purification apparatus, and this supports the appellant's case. 11. It is difficult to see to how the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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