Customs exemption for food-processing machines does not cover beer bottle labelling equipment used for intoxicating drinks.

An automatic bottle labelling machine used for beer bottles was considered outside the exemption granted by the customs notification for specified food processing and packaging machines. Beer was held not to be a food article for this purpose, so equipment used for labelling beer bottles did not qualify for the exemption. The reasoning was reinforced by Article 47 of the Constitution, which reflects the State policy against intoxicating drinks except for medicinal purposes. On that basis, the machine was not entitled to exemption under the notification issued under Section 25 of the Customs Act, 1962.

---

---

Issues: Whether an automatic bottle labelling machine used for labelling beer bottles was entitled to exemption under the notification issued under Section 25 of the Customs Act, 1962.

Analysis: The notification granted exemption only for specified food processing and packaging machines. Beer was held not to be a food article for the purpose of the notification, and the machine was used in connection with labelling beer bottles. Article 47 of the Constitution of India, reflecting the State's policy against intoxicating drinks except for medicinal purposes, supported the view that beer could not be treated as food for this exemption.

Conclusion: The machine was not entitled to exemption under the notification.

---