1994 (9) TMI 145

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....ml containers. 3. The respondents filed their classification lists under TI 68 claiming exemption under Notification No. 104/82. While holding it as classifiable under TI 68 the Assistant Collector denied the benefit of Notification Nos. 104/82 and 234/82. 4. The Collector (Appeals) allowed the respondents' appeal treating the item as a prepared and preserved food under Tariff Item 1B eligible for exemption under Notification No. 17/70. 5. Learned D.R. stated that Learned Collector (Appeals) has erred in doing so. The Tariff Item No. 1B of CET deals with P & P food put up in unit containers. The term `food' is not defined under TI 1B. However, Government of India, in its order in revision No. 702/80 in the case of M/....

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.... also in one of the cases. Taking into account the various products covered by tariff description under Item No. 1B of CET and the specified items described in the notification issued under Rule 8(1) may be held that the product in question is not P or P food & therefore will fall under TI 68 of CET. Under TI 68, various kinds of food products and food preparations are exempted under Notification No. 234/82, dated 1-11-1982 as amended. However the product in question is food supplement and the food supplement cannot be treated as food product or food preparation; hence it will not be eligible for exemption under the notification. 6. According to the respondents their product is neither drug nor a medicine. It was their contention th....

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....empted by virtue of Notification No. 234/82 (as amended) since the schedule exempts all kinds of food products and food preparations and it is not hit by the proviso. 10. We have considered the above submissions. We find that the product in question is a preparation in the nature of a tonic normally taken as food supplement. However this preparation is not of a type normally considered as `Prepared or Preserved foods' but in the nature of a synthetic product prepared by combining or mixing various chemical ingredients in specified proportions. 11. In the post-February 1986 tariff such `tonic beverages' have been specifically excluded from Chapter 30 `Pharmaceutical products' by Chapter Note 1(a) which reads as follows : "....