Trade and commerce meaning of food preparations supported duty exemption for non-alcoholic beverage bases.

Non-alcoholic beverage bases were construed as food products or food preparations for exemption purposes under Notification No. 55/75 because the expression in the notification was understood in trade and commerce, their composition and use matched the CCCN notes on food preparations, and the import policy treated them as foods. Definitions in the Prevention of Food Adulteration Act were held irrelevant due to their different statutory object, and the product was distinguished from the coffee-chicory blend considered in the cited High Court decision. The bases were therefore eligible for duty exemption under Serial No. 1 of the Schedule.

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Issues: Whether non-alcoholic beverage bases manufactured by the appellants qualified as food products or food preparations eligible for exemption under Notification No. 55/75.

Analysis: The expression in the exemption notification was construed in the sense in which it is understood in trade and commerce. The composition and use of the product were consistent with the description of food preparations in the CCCN notes, and the import policy also treated non-alcoholic beverage bases as foods. The Prevention of Food Adulteration Act definitions were held to be inapposite because of the different statutory object. The product was distinguishable from coffee-chicory blend considered in the cited High Court decision.

Conclusion: The non-alcoholic beverage bases were held to be eligible for duty exemption under Serial No. 1 of the Schedule to Notification No. 55/75.

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