Flavoured milk exemption under excise notifications upheld where the product matched the notified description.

Flavoured milk of animal origin was treated as covered by the exemption notifications applicable to the product, because the notifications were intended to exempt flavoured milk of animal origin from excise duty and the appellant's product matched that description. The separate classification issue was not pressed and therefore was not adjudicated. On that basis, the exemption benefit was held available for the relevant periods and the appeals were allowed.

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Issues: Whether flavoured milk of animal origin was entitled to exemption under Notification No. 17/2008-C.E. (N.T.) dated 27-3-2008 for the period prior to 15-6-2007 and under Notification No. 3/2005-C.E. dated 24-2-2005 thereafter.

Analysis: The dispute turned on the applicability of the exemption notifications to flavoured milk manufactured by the appellant. The notifications were intended to exempt flavoured milk of animal origin from excise duty, and there was no dispute that the appellant's product answered that description. The separate classification issue was not pressed and therefore did not require adjudication.

Conclusion: The appellant was entitled to the benefit of the exemption notifications, and the appeals were allowed.

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