2021 (9) TMI 571

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....m in display to fascinate consumer. The cakes & pastries are of perishable nature and cannot be preserved for longer period and on regular interval all cakes & pastries kept in display have to be compulsorily replaced after expiry of said bakery item. The applicant submits that display assists them to achieve the objectives of continuing to conduct the business of manufacturing and selling cakes & pastries in future also. 2. The applicant submitted that there is no free/sample supply of extra cakes & pastries to distributors. Such extra cakes & pastries are supplied with tax invoice which means that supply of goods is taxable supply. When such extra cakes & pastry expired and return back to the applicant, assessee issues credit note for th....

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.... to be reversed or otherwise. 8. The applicants admits that subject cakes & pastries kept in display, to fascinate consumers, are of perishable nature and cannot be preserved for longer period. During personal hearing, the applicant was requested to clarify the mode of disposal of expired cakes and pastries, to which the applicant submitted that they throw away the expired Cakes & Pastry. 9. We hold that Cakes and pastry have limited shelf life and after expiry these bakery items are prohibited from sale. We draw our attention to Section 7 of Prevention of Food and Alteration Act, 1954 prohibiting the sale of expired goods as such are not fit for consumption. Further section 273 Indian Penal Code criminalizes the act of sale of harmful pe....