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CPK, J & AVRB, J

10. POINTS:-

The assessing authority, after analyzing the subject on record, held as under:-

"........ The objection is examined and found to be not tenable. All the products classifiable under Chapter 1 to 22 don't attracts 2.5% tax under the Act as per entry no:26(f) of notification no:11/2017-CT (Rate) dt : 28-6-2017. Only food and food products of these chapters are eligible for this exemption. Now it is to be seen whether the alcoholic liquor for human consumption can be considered as food for the purpose of levy of tax at lower rate under the said notification. There is no definition of food and food products under the Act. However, the Supreme Court in the case of Collector of Central Excise Vs Parle Exports Pvt Ltd reported in 1998 (38) ELT 741 (SC) held that non-alcoholic beverages were not eligible for exemption as food products. Everything consumed by human cannot be considered as food or food products for the purpose of exemption from GST. The context and spirt and reason of law need to be examined to extend exemption. The Hon'ble Supreme Court in the aforesaid judgment has held that "it cannot be contended that expensive items lie Gold-Spot base, Limca base or Thumsup base were intended to be given exemption at the cost of public exchequer." Similarly it would have never been the intention of law to exempt expensive items like "Alcoholic Liquor" under the category of food and food products even through the same is for human consumption. Further the notification no:6 dt: 30-9-2021 is clarificatory CPK, J & AVRB, J in nature for the above position, therefore the objection is rejected as not tenable."

15. In Collector of Central Excise Vs Parle Exports Pvt Ltd1, the Hon'ble Supreme Court held that it will never be the intention of legislature to exempt expensive items like alcoholic liquor under the category of food and food products though the same is for human consumption. While dealing with the meaning of the word "food products or food beverages", the Hon'ble Supreme Court, in Parle Exports' case, observed that there is no direct evidence, as such, as to how in commercial parlance, unlike in ordinary parlance, non-alcoholic beverage bases are treated or whether they are treated as food products 1998 (38) ELT 741 (SC) CPK, J & AVRB, J or food preparations. The purpose of exemption is to encourage food production and also give boost to the production of goods in common use and need. After all, the purpose of exemption is to help production of food and food preparations at cheaper price and also help production of items which are in common use and need.