Rev. Rul. 57-275

Since deionized (demineralized) water is not a product of distillation, pipe lines conveying such water, at taxpaid bottling houses and rectifying plants, are considered be in the same category as public utility lines, and, therefore, are held not to be subject to the regulations imposed on pipe lines used to convey distilled water, as contained in section 230.66 of the Regulations relating to the Bottling of Taxpaid Spirits and section 235.140 of the Regulations relating to the Rectification of Spirits and Wines. For restrictions as to the use of demineralized and partially demineralized water in the reduction in proof of distilled spirits, see Revenue Ruling 54-619, C.B. 1954-2, 461, as supplemented by Revenue Ruling 57-122, page 560 of this Bulletin.