Tribunal rules in favor of flight caterers on excise duty for branded food trays.

The Tribunal ruled in favor of the appellants, flight caterers, in a case concerning excise duty liability on food trays with their brand name. The Tribunal determined that assembling various food items in a tray and including their name on a cutlery pack did not amount to manufacturing under the Central Excise Tariff. As the appellants did not engage in manufacturing activities beyond assembling and serving the food items, the Tribunal granted a waiver of duty, highlighting that the branding was for catering services identification, not food manufacturing.

---

---

Issues:
1. Whether the appellants are liable to pay excise duty on the complete tray of food items served with their brand nameRs.
2. Whether putting together different food items in a tray amounts to manufacturing under the Central Excise TariffRs.
3. Whether the appellants conveying their catering service through a name card in the cutlery pack constitutes manufacturing for excise duty purposesRs.

Analysis:
1. The case involved flight caterers who prepared food items in their factory, including a cutlery pack with their name, and served them on aircraft along with other items like dal, rice, curry, butter, and jam from other manufacturers. The Revenue argued that the complete tray with the appellants' brand name constituted an item manufactured by them, thus attracting excise duty under sub-heading 2108.99 of the Central Excise Tariff.

2. The Counsel for the appellants contended that they were not engaged in further manufacturing activities in-flight as alleged by the Revenue. The Tribunal analyzed the situation and concluded that merely assembling different food items in a tray did not amount to manufacturing. The appellants did not claim the other items as their own manufacture, and the presence of their name on the cutlery pack was to signify catering services, not food manufacturing.

3. The Revenue argued that since the final tray served to passengers carried the appellants' brand name, excise duty should be levied on the full value of the tray billed to the Airlines. However, the Tribunal held that the act of combining various food items in a tray, along with a name card in the cutlery pack indicating the caterers, did not establish manufacturing by the appellants. The name card served the purpose of identifying the catering service provider and not the manufacturer of the food items.

In conclusion, the Tribunal granted a waiver of duty for the appellants, as they did not meet the criteria for excise duty liability based on the activities of assembling and serving food items in trays with their branding. The decision emphasized that the presence of the caterers' name in the cutlery pack did not imply manufacturing by them, leading to a stay on the collection of dues during the appeal's pendency.

---