TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether food flavours and food colour preparations manufactured by the petitioners were covered by Notification No. 55/75 dated 1-3-75 as "food products" or "food preparations" and were therefore exempt from duty.
Analysis: The relevant notification contained no definition of the expressions "food products" or "food preparations". The governing approach in tax classification was the meaning understood in trade and ordinary parlance, not a broad dictionary meaning or the wider meaning given under the Prevention of Food Adulteration Act. Applying that test, the goods in question could not be regarded as articles of food consumed by a normal human being, either directly or after ordinary processing. They were only additives that improved taste or appearance of food, and were not themselves food products or food preparations within the exemption entry.
Conclusion: The claim for exemption failed and the finding was against the petitioners.
Final Conclusion: The revision was dismissed and the exemption under Notification No. 55/75 was denied in respect of the impugned goods.
Ratio Decidendi: In construing a taxing exemption, the expression used in the notification must be understood in commercial and ordinary parlance, and an article that is only an additive to food but is not itself ordinarily consumable as food does not fall within an exemption for food products or food preparations.
TaxTMI 
