UNICHEM LABORATORIES LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is a revision application (hereinafter called "appeal") filed before the Central Government which under Section 35P of the Central Excises and Salt Act, 19H, stands transferred to this Tribunal to be disposed of as if it were an appeal presented before the Tribunal.

(2.) THE main issue in this case is whether the foodstuff "Paushtik" manufactured by the appellants is eligible for exemption from duty under Notification No. 17/70 -C.E. dated 1 -3 -70 as amended. According to the appellants, "Paushtik" is a low cost nutrition food meant for supply to the U.P. Government for free supply to school children. It cannot be used for making beverages, invalid foods and gruels by mixing with or boiling in water, but is simply a snack not requiring any mixing.

(3.) IN the classification list dated 10 -3 -78 filed by them, the appellants had indicated the classification of this product as being under Item IB of the Central Excise Tariff Schedule but claimed that it was exempted from duty (they did not specify the exemption notification, but were apparently referring to the Notification No. 17/70). The Assistant Collector did not however accept the claim for exemption under the aforesaid notification. They therefore went in appeal to the Appellate Collector. That authority also held that the product was not eligible for exemption from duty under Notification No. 17/70. In terms of this notification, prepared or preserved foods falling under Item No. IB, other than those specified in the schedule annexed thereto, have been exempted from the whole of the excise duty. Serial No. 1* of the schedule to that notification reads as under : -