Common parlance test for exemption notifications excluded non-alcoholic beverage bases from "food products" coverage.

Exemption notifications in fiscal law are construed in their statutory context and common parlance, and the language cannot be extended beyond what it reasonably covers. Applying that approach, the Court treated the expression "food products and food preparations" as referring to articles ordinarily understood as food or food preparations meant for consumption, read alongside tariff entries distinguishing such goods from beverages. Non-alcoholic beverage bases were not regarded in Indian common parlance as food products or food preparations, so they did not fall within the exemption under Notification No. 55/75-C.E. The revenue's claim to duty therefore succeeded.

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Issues: Whether non-alcoholic beverage bases were "food products" or "food preparations" entitled to exemption under Notification No. 55/75-C.E. dated 1st March, 1975.

Analysis: The exemption notification had to be read with the tariff scheme and the statutory context in which the expression "food products and food preparations" was used. The relevant entries in the tariff distinguished food and food products from beverages, and the surrounding materials indicated that the notification was intended to cover articles ordinarily understood in common parlance as food or food preparations meant for consumption. The Court applied the ordinary and contextual meaning of the expression, while bearing in mind that exemption clauses in fiscal legislation may be construed in favour of the assessee only where the language reasonably permits it. On that approach, non-alcoholic beverage bases such as the products in question were not treated in Indian common parlance as food products or food preparations.

Conclusion: The goods were not exempt under Notification No. 55/75-C.E.; the revenue's claim to duty succeeded.

Ratio Decidendi: In construing an exemption notification in a fiscal statute, the expression used must be understood in its statutory context and common parlance, and an article not ordinarily understood as a food product or food preparation cannot be brought within the exemption by an extended meaning.

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