9911796707
TMI Blog1988 (11) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that expensive items like Gold-Spot base, Limca-base or Thumps up-base were intended to be given exemption at the cost of public exchequer. The appeals have to be allowed and the decision of the Tribunal reversed. X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned therein contains the expressions "FOOD AND BEVERAGES". It provides therein description of various types of goods and the rates of duties applicable thereto. In the said description "Food and Beverages" many items are Included, viz., sugar produced in a factory ordinarily using power in the course of production of sugar, (1A) confectionary, cocoa powder and chocolates, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, namely, boiled sweets, toffees, caramels, candies, nuts (including almonds) and fruit kernels coated with sweatening agent, and chewing gums, cocoa powder, drinking chocolates etc. It also includes items (1 B) prepared or preserved foods put up in unit containers and ordinarily intended for sale, including preparations of vegetables, fruit, milk, cereals, etc., and as item 1 (C) food products, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power, namely, biscuits, pasteurised butter, pasteurised or processed cheese, aerated waters, whether or not flavoured or sweetened and whether or not containing vegetable or fruit juice or fruit pulp etc. 4. Tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be varied but so far as coffee-chicory blend was concerned there was little doubt that it was beverage and not food. The learned Judge referred to paragraph 1093 of Volume 18 of Halsbury's Laws of England (4th Edn.). In that paragraph, coffee-chicory products are mentioned under the general heading 'Food, Dairies and Slaughter Houses' and sub-heading 'Food Generally'. Coffee-chicory blend is also mentioned in that paragraph. But the coffee and coffee products under the heading 'Food generally' were in context of the law of Food Adulteration and the Coffee and Coffee-produce Regulations, 1967 in force in England. Reference was also made by the learned Judge to Corpus Juris Secundum, Volume 36 at page 1041. The learned Judge, in our opinion, rightly-observed that the aforesaid passage from the Halsburry's Laws of England and Corpus Juris Secundum could not be mechanically imported into the present case more particularly, when we are concerned with the situation under the Tariff Schedule. 'Food', as has been noted, has no fixed definition of universal application and its meaning varies from statute to statute. The dividing line, the learned Judge observed, between the beverage and foo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in greater or less quantities in the substances eaten) complex organic substances which fall into three principal groups, Proteins, Carbohydrates and Fats." Next is given a special defination for legal purposes, namely- "As used in laws prohibiting adulteration etc., 'food' is generally held to mean any article used as food or drink by man, whether simple, mixed or compound, including adjuncts such as condiments, etc., and often excluding drugs and natural water." The definition given of 'foodstuff' is- 1. Anything used as food. 2. Any substances of food value as protein, fat etc. entering into the composition of a food. It will be seen from these definitions that "foodstuff" has no special meaning of its own. It merely carries us back to the definition of "food" because "foodstuff' is anything which is used as "food". So far as "food" is concerned, it can be used in a wide as well as a narrow sense and, in my opinion, must depend upon the context and background. Even in a popular sense, when one asks another "Have you had your food?", one means the composite preparations which normally go to constitute a meal-curry and rice, sweetmeats, pudding, cooked vegetables and so for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of doubts have been raised about the general scope of the terms "food products/preparations" vide Entry No. 1 in the Schedule to Notification No. 55/75, dated 1-3-1975. Specific queries have also been raised as to whether items like oil cakes, rice bran, scented chunam, katha, starch, guargum, gur, flour, ice cream and ice candy, ice, supari, groundnut kernels, and cashew kernels could be regarded as covered under the above entry as claimed by the manufacturers of these goods. 2. The matter has been examined and the following clarifications are used for the information of the trade. The word 'food' is a general term and applies to all that is eaten by men for nourishment and takes in subsidiaries, further: (i) preparations for use, either directly or after processing such as cooking, dissolving or boiling in water, milk etc.) for human consumption; and (ii) preparations used because of their nutritional or flavouring properties in the making or beverages or foodstuffs for human consumption, are classifiable as food preparations. But such preparations which because of their ingredients and small proportion in which they are normally used, are clearly added for other purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. (Please see note attached). S.R. No. 2 Base-B (Lab. No.11) The sample is in the form of white powder. It is sodium Benzoate-a-chemical known to be used as a preservative. S.R. No. 3 Base-C (Lab. No. 12) The sample is in the form of white powder. It is vitamin 'C' (ascorbic acid) an organic chemical. Limca Base : S.R. No. 4 Base-A (Lab. No. 13) The sample is in the form white liquid containing flavouring agents. It is free from Alcohol. (Please see note attached.) S.R. No. 5 Base-B (Lab.No. 14) The sample is in the form of white powder. It is sodium Benvonate-a-chemical known to be used as a preservative." 7. The note appended to these reports stated inter alia the following: "NOTE" "The term "food" as defined in the Prevention of Food Adulteration Act, 1954 meant any article used as food or drink for human consumption other than drugs and water and includes :- (a) Any article which ordinarily enters into, or is used lathe composition or preparation of human foods; and (b) any flavouring matter or condiments. Food products which are excluded from item (C) would fall under Item 68 of Central Excise Tariff read with the Notification 62/78, dated 1-3-1978 excluded as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Additional Solicitor General, Mr. Kuldip Singh, on the other hand submitted that non-alcoholic beverage base though having some food value, is not food product or food preparation, at any rate, in the context of the Act and notification as such. He drew our attention to the first heading in the First Schedule to the Act dealing with "Food and Beverages" and pointed out that items 1 to 1C deal with Food and Food Products while item 1D deals with beverages separately. He submitted before us that this indicates that the expression "food products and food preparations" are used in contrast to "beverages" so far as the present Act and notifications thereunder are concerned. There is force in the submissions of the learned Additional Solicitor General. 11. Our attention was drawn to a decision of the Government of India in Re: Asian Chemical Works [1982 (10) ELT 609A] where the Government of India opined that 'Food flavours' and 'food preparations' might improve taste or appearance of food products and/or food preparations, but by themselves could not be legitimately consumed directly or after processing such as cooking, dissolving, or boiling in water for human consumption independ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this connection, it is well to remember the observations of the Judicial Committee in Corollne M. Armytage & Others v. Frederick Wilkinson [1878 (3JA.C. 355 at 370] that it is only, however, in the event of there being a real difficulty in ascertaining the meaning of a particular enactment that the question of strictness or of liberality of construction arises. The Judicial Committee reiterated in the said decision at page 369 of the report that in a taxing Act provisions establishing an exception to the general rule of taxation are to be construed strictly against those who invoke its benefit. While interpreting an exemption clause, liberal interpretation should be imparted to the language thereof, provided no violence is done to the language employed. It must, however, be borne in mind that absurd results of construction should be avoided. 13. In Hindustan Aluminium Corporation Ltd. v. State of Uttar Pradesh & Another [1982 (1) SCR 129] this Court emphasised that the notification should not only be confined to its grammatical or ordinary parlance but it should also be construed in the light of the context. This Court reiterated that the expression should be construed in a manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xt in which the intention of the law-giver has been expressed. Cross refers to Blackstone's observations that the fairest and most rational method to interpret the will of the law-maker is by exploring his intentions at the time when the law was made, by signs the most natural and probable. And these signs are either the words, the context the subject matter, the effects and consequences, or the spirit and reason of the law. We have no doubt, in our opinion, but having regard to the language used it would not be in consonance with the spirit and the reason of law to give exemption for non-alcoholic beverage bases under the notification in question. Bearing the aforesaid purpose, in our opinion, it cannot be contended that expensive items like Gold-Spot base, Limca-base or Thumps up-base were intended to be given exemption at the cost of public exchequer. 16. For the aforesaid reasons, the appeals have to be allowed and the decision of the Tribunal reversed. We, however need not go into the question of penalty as well as the question of limitation which have been left open by the Tribunal in its order. It will be open for the parties to urge these points afresh before the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
