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of <h1>Court rules beer not a 'food article' for tax exemption, dismissing writ petition.</h1> The court concluded that beer does not qualify as a 'food article' for the purposes of the exemption notification dated 17-2-1986. The judgment under ... Exemption Notification - Classification of goods Issues Involved:1. Whether beer is a 'food article' within the meaning of Exemption Notification No. 125/86-Cus., dated 17-2-1986.Issue-wise Detailed Analysis:1. Whether beer is a 'food article' within the meaning of Exemption Notification No. 125/86-Cus., dated 17-2-1986.The core issue in this appeal is whether beer qualifies as a 'food article' under Exemption Notification No. 125/86-Cus., dated 17-2-1986. The notification exempts certain goods when imported for use in processing/packaging food articles from customs duty.Arguments by the Petitioner:The petitioner, a company, imported an automatic bottle labeling machine and claimed it should be exempt from customs duty under the said notification, arguing that beer is a food article based on the following grounds:- Beer falls within the purview of the Ministry of Food Processing Industries.- The Bureau of Indian Standards specifies a standard for beer under its Food and Agriculture Department.- The Agricultural and Processed Food Products Exports Development Authority Act includes alcoholic beverages in its schedule.- Beer is included in the Import and Export Policy for registered exporters.- Beer falls under the Prevention of Food Adulteration Act, 1954.- Beer has nutritional value and is consumed for various health benefits.- Beer is categorized under 'Food Products' in the Monopolies and Restrictive Trade Practices (Classification of Goods) Rules, 1971.- The ingredients of beer (malt, rice, sugar, yeast) are food articles.Arguments by the Appellant:The appellant raised preliminary objections and argued that:- 'Food' and 'Beverages' are treated differently under Section IV of the Customs Tariff Act, and beer, being an alcoholic beverage, cannot be included in the exemption notification.- In common parlance, beer is not considered a food article, supported by precedents such as Collector of Central Excise v. Parle Exports (P) Ltd.Court's Analysis:- The court examined various sections of the Customs Tariff Act and noted that food articles are not defined within the Act.- It referenced State of Bombay v. V.G. Shah, which highlighted that the term 'food' can be interpreted differently based on context.- The court emphasized that the meaning of 'food articles' should be understood in common parlance rather than technical or dictionary definitions.- The court noted that the Customs Tariff Act is a special statute dealing with customs duties, and the exemption notification must be construed in its specific context.- The court referred to Article 47 of the Constitution of India, which aims to prohibit intoxicating drinks, including beer, for public health reasons.- It was highlighted that beer, being an alcoholic beverage, is not consumed for nutritional purposes by the common Indian populace but for intoxication or pleasure.- The court found that including beer as a food article would lead to absurdity and is beyond common perception.Judgment:The court concluded that beer does not qualify as a 'food article' for the purposes of the exemption notification dated 17-2-1986. Therefore, the judgment under appeal was set aside, and the writ petition filed by the petitioner was dismissed. No order as to costs was made.
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