{"id":45201,"date":"1983-10-04T00:00:00","date_gmt":"1983-10-03T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/unichem-laboratories-ltd-vs-collector-of-central-excise-on-4-october-1983"},"modified":"2016-08-21T22:31:24","modified_gmt":"2016-08-21T17:01:24","slug":"unichem-laboratories-ltd-vs-collector-of-central-excise-on-4-october-1983","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/unichem-laboratories-ltd-vs-collector-of-central-excise-on-4-october-1983","title":{"rendered":"Unichem Laboratories Ltd. vs Collector Of Central Excise on 4 October, 1983"},"content":{"rendered":"
Customs, Excise and Gold Tribunal – Delhi<\/div>\n
Unichem Laboratories Ltd. vs Collector Of Central Excise on 4 October, 1983<\/div>\n
Equivalent citations: 1983 ECR 2038 D Tri Delhi, 1987 (31) ELT 87 Tri Del<\/div>\n<\/p>\n
<\/pre>\n
ORDER<\/p>\n
 S. Venkatesan, Sr. Vice-President <\/p>\n
1. This is a revision application (hereinafter called “appeal”) filed before the Central Government which under Section 35P of the Central Excises and Salt Act, 19H, stands transferred to this Tribunal to be disposed of as if it were an appeal presented before the Tribunal.\n<\/p>\n
2.     The  main  issue  in this  case  is whether  the  foodstuff  “Paushtik” manufactured by the appellants is eligible for exemption from duty under Notification  No.   17\/70-C.E.   dated   1-3-70  as  amended.   According   to  the appellants,  “Paushtik”   is  a  low   cost   nutrition  food  meant   for  supply  to the U.P. Government for free supply to school children. It cannot be used for  making beverages,  invalid  foods and gruels by mixing with or boiling in water, but is simply a snack not requiring any mixing.\n<\/p>\n
3.     In the classification list dated 10-3-78 filed by them, the appellants had   indicated  the  classification  of   this  product   as being  under  Item   IB of the Central Excise Tariff Schedule but    claimed that it was exempted from   duty   (they   did   not   specify   the   exemption   notification,   but   were apparently referring to the Notification No. 17\/70). The Assistant Collector did not however accept the claim for exemption under the aforesaid notification.  They   therefore  went   in  appeal   to  the   Appellate  Collector. That authority  also  held  that  the product  was  not  eligible for  exemption from duty under Notification No.   17\/70.  In terms of  this notification, prepared or  preserved  foods  falling  under  Item  No.   IB,  other  than those  specified in the schedule annexed thereto, have been exempted from the whole of the excise duty. Serial No. 1* of the schedule to that notification reads as under :-\n<\/p>\n
 “Preparations with a basis of flour, of starch, of malt extract, or of malted barley, and milk foods, which by simply mixing with, or boiler in milk or water, can be used for making beverages, invalid foods and gruels, whether or not containing cocoa, but excluding baby foods, that is to say, foods specially prepared for feeding of infants;”\n<\/p>\n
The Appellate Collector held that the product would be covered by the above Serial No. 14. In this connection he observed as follows :-\n<\/p>\n
 “I also find that the appellants themselves have admitted in their appeal that their product is simply a ready to eat snack based on wheat, soya and fats, in which the percentage of wheat base is 75% and it could such be consumed without even mixing with a (sic) boiling in milk or water and hence it is definitely a preparation with basis of flour as indicated in S. No. 14 of the schedule annexed to Notification No. 17\/70-CE dated 1-3-1970”.\n<\/p>\n
4.     Appearing for the appellants, Shri Kohli argued that the wording of Serial No.   14 reproduced  above did not cover their product which was ready to eat and did not have to be mixed or boiled with milk or water. He stated that the fact that the product was ready to eat and    did not require  such  mixing  or  boiling with  milk or water had been accepted by the Appellate Collector and there was no doubt on this point.\n<\/p>\n
5.     Invited to reply on this point, Shri Tayal argued that the schedule to  Notification  No.   17\/70   also  listed  several  products  which were  ready to  eat.   According  to  him,  therefore,  the  fact  that  a  product  was  ready to  eat  did  not exclude  it from  the scope  of  the dutiable products listed in the schedule.\n<\/p>\n
6.     We pointed out  to Shri Tayal  that Serial No.  14 of the schedule specifically referred to preparations which had to be mixed or boiled with milk   or  water,   whereas   such   a  condition  was  not  included  in  the  other entries  in  that  schedule.  On  our  enquiring  whether  it  was  his  case  that the product was covered by some other item of the schedule to the notification, Shri Tayal  replied that the  Department’s case was based only on Serial No. 14 of the schedule.\n<\/p>\n
7.     We   have   given  our  careful  thought  to  this  point.  Serial  No.   14 of   the   schedule   specifically   refers  to  preparations  with  a basis  of   flour etc., which can be used for making beverages etc., by simply mixing with, or boiling in, milk or water. It is obvious that this entry would not cover a preparation  of  flour etc., which  is  ready  to eat and does not    require, mixing  with,  or boiling  in,  milk  or water. The appeal  therefore deserves to succeed on this point alone.\n<\/p>\n
8.    The appellants had also raised a point before the Appellate Collector that the product was packed  in polythene bags containing 25  Kg, and these could not be termed as “unit containers” as required by the description of  Item  No.   IB. This contention was rejected by the Appellate Collector. Shri Kohli raised this also before us. In reply to a query from us, he agreed that if this contention was accepted, the result would be that the product would fall outside the scope of  Item   IB and would fall within the scope of   Item   68   of   the   Central  Excise  Tariff  Schedule.  Shri  Kohli  submitted that even in that case it would not be dutiable, being covered by Notification No. 55\/75-C.E. dated 1-3-75, which exempted all kinds of food products and food preparations falling under Item 68.\n<\/p>\n
9.     Neither  the appellants nor the Appellate Collector have referred to any statutory or standard definitions of the expression “unit containers”. The appellants themselves had, in their classification list, shown the product as  falling  within Item   IB.  Since  the appeal deserves to succeed  on  the basis of the appellants1 contention that the product does not come within the scope of Serial No.  14 in the schedule to Notification No. 17\/70, we do not find  it  necessary  to go into their contention that the container in which  the product was  sold were  not “unit containers”, that on this account the product would be excluded from the scope of Item IB.\n<\/p>\n
10.   In   the   result,   we   allow   the   appeal,   accepting   the   appellants’ contention that the product is not covered by Serial No. 14 to Notification No.  17\/70 dated  1-3-1970, and direct that consequential relief be granted to the appellants.\n<\/p>\n
Announced in open Court.<\/p>\n","protected":false},"excerpt":{"rendered":"
Customs, Excise and Gold Tribunal – Delhi Unichem Laboratories Ltd. vs Collector Of Central Excise on 4 October, 1983 Equivalent citations: 1983 ECR 2038 D Tri Delhi, 1987 (31) ELT 87 Tri Del ORDER S. Venkatesan, Sr. Vice-President 1. This is a revision application (hereinafter called “appeal”) filed before the Central Government which under Section […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,33],"tags":[],"class_list":["post-45201","post","type-post","status-publish","format-standard","hentry","category-customs-excise-and-gold-tribunal-delhi","category-tribunal"],"yoast_head":"\nUnichem Laboratories Ltd. vs Collector Of Central Excise on 4 October, 1983 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/unichem-laboratories-ltd-vs-collector-of-central-excise-on-4-october-1983\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Unichem Laboratories Ltd. vs Collector Of Central Excise on 4 October, 1983 - 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