1988 (11) TMI 108 - SC - Central Excise

Whether non-alcoholic beverage bases are 'food products' or "food preparations" covered by the exemption notification No. 55/75-CE of 1st March, 1975?

Held that:- The purpose of exemption is to encourage food production and also give boost to the production of goods in common use and need. After all the purpose of exemption is to help production of food and food preparations at cheaper price and also help production of items which are in common use and need like electric light and power.

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. The appeals have to be allowed and the decision of the Tribunal reversed.