Exemption for food preparations under an approved welfare programme upheld on proof of free distribution to weaker sections.

Exemption under Notification No. 6/2000-C.E. was available for food preparations falling under Heading 1901.19 when the manufacturer produced a prescribed certificate showing free distribution to economically weaker sections under a State-approved programme. The record contained certificates from the competent State authority stating that the goods supplied were part of the ICDS programme and had been distributed free of cost to economically weaker sections, and the Revenue did not dispute that position. On those facts, denial of the exemption was unsustainable, and the appellant was entitled to the notification benefit.

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Issues: Whether the appellant was entitled to exemption under Notification No. 6/2000-C.E. for food preparations intended for free distribution to economically weaker sections under a programme duly approved by the State Government.

Analysis: The relevant notification exempted food preparations falling under Heading 1901.19 when the manufacturer produced a certificate from the prescribed authority showing that the goods had been distributed free to economically weaker sections under an approved programme within the stipulated time. The record showed certificates from the competent State authority stating that the goods supplied by the appellant were part of the ICDS programme and had been distributed free of cost to the economically weaker sections of society. The Revenue did not dispute the free distribution of the goods under the approved programme.

Conclusion: The denial of exemption was unsustainable, and the appellant was entitled to the benefit of the notification.

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