COMMNR.OF CENTRAL EXCISE,NEW DELHI vs. M/S.CONNAUGHT PLAZA REST.(P)LTD.N.D

C.A. No.-005307-005308 - 2003Supreme Court27 November 201239 pages
For Respondent: RAJESH KUMAR
AI SummaryAllowed

What did the Supreme Court hold?

The Supreme Court held that the common parlance test, not technical specifications from other acts, should determine classification under the Tariff Act. It found that 'soft serve' is commonly understood as a type of ice-cream.

What were the facts?

The revenue sought to classify 'soft serve' sold by McDonalds under heading 21.05 as ice-cream. The assessee contended it was a dairy product or edible preparation not elsewhere specified. The Tribunal classified it under sub-heading 2108.91.

What were the issues?

The primary issue was the classification of 'soft serve' under the Central Excise Tariff Act, specifically whether it should be treated as ice-cream or another edible preparation. The court also considered the relevance of common parlance versus technical definitions for classification.

Which sections of the Income-tax Act were involved?

Section 35L,Section 11A

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Cause title — parties, addresses and appearances
Page 1 JUDGMENT REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 5307-5308 0F 2003 COMMISSIONER OF CENTRAL EXCISE, NEW DELHI — APPELLANT VERSUS M/S CONNAUGHT PLAZA RESTAURANT (P) LTD., NEW DELHI — RESPONDENT

J U D G M E N T D.K.

JAIN,

J.

1.

The short question of law for consideration in these appeals, filed by the revenue, under Section 35L of the Central Excise Act, 1944 (for short “the Act”) is whether ‘soft serve’ served at the restaurants/outlets commonly and popularly known as McDonalds, is classifiable under heading 21.05 (as claimed by the revenue) or under heading 04.04 or 2108.91 (as claimed by the assessee) of the Central Excise and Tariff Act, 1985 (for short “the Tariff Act”). 2.During the relevant period, the respondent-assessee was engaged in the business of selling burgers, nuggets, shakes, soft-serve etc. through its fast food chain of restaurants, named above. In so far as the manufacture and service of ‘soft serve’ is concerned, the 1

Page 2 JUDGMENT assessee used to procure soft serve mix in liquid form from one M/s Amrit Foods, Ghaziabad; at Amri

The order continues below.

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