1991 (5) TMI 159

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..... C. Chawla, Advocate, for the Respondents. [Order per : N. K. Bajpai, Member (T)]. -  The short point which-falls for consideration in this appeal is whether under Notification 38/78-C.E., dated 1-3-1978 (which permits use of skimmed milk powder into regeneration of liquid milk), sweetened flavoured milk could be produced and could still enjoy the exemption under the notification. Whil....

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.... case in which such regenerated liquid milk is captively consumed and those in which it is cleared from the factory of production and is used further at other place. 2. The department has contended in its appeal before us that the respondents herein who were holding an L6 licence and were obtaining skimmed milk powder free of duty from Indian Dairy Development Corporation, New Delhi and also fr....

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.... Court in the case of M/s. Vadilal Dairy Frozen Food Industries, Ahmedabad v. Union of India & Others [1983 (12) E.L.T. 672 (Guj.)] in which it was decided by the Division Bench that skimmed milk powder which is not utilised in the re-generation of milk will' not be eligible for exemption under Notification 38/78-C.E., dated 1.3.78, if such skimmed milk powder is used in the manufacture of ice-cre....

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.... a rider is not added skimmed milk would be entitled to exemption regardless of whether the ultimate product is ice-cream or barfi or some other product. But the rider is added purposefully so that skimmed milk is regenerated into liquid milk within the very premises of the factory, or when the Assistant Collector is satisfied that it is for 'use' for regeneration of liquid milk.......................