Food processing exemption unavailable for beer bottling machinery where beer is not treated as food

Machinery imported for use in beer bottling was held outside the scope of the exemption for machinery used in the food processing industry. The exemption under Notification No. 125/86 applied only where the imported equipment was used for processing food articles, and beer was not treated as an article of food for that purpose. As the fully automatic labelling machine was intended for affixing labels on beer bottles, the benefit of the notification was denied.

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Issues: Whether the imported Fully Automatic Labelling Machine was eligible for exemption under Notification No. 125/86 dated 17-2-1986.

Analysis: The machine was imported when the appellant had not commenced manufacture of any food articles. It was intended to be used for affixing labels on beer bottles. The exemption was available only to machinery used in the food processing industry. Beer was not treated as an article of food, and the exclusion was supported by the settled position that beer does not qualify as food for the purposes of the notification.

Conclusion: The machine was not eligible for exemption under the notification, and the denial of benefit was .

Ratio Decidendi: Machinery imported for use in beer bottling does not qualify for exemption reserved for machinery used in the food processing industry, because beer is not an article of food.

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