H.R. Syiem, Member (T)

1. By his Order No. 480/Cal/84, dated 10-4-1984, the Collector of Central Excise (Appeals), Calcutta decided that screw caps used or Horlicks bottles manufactured by M/s. HMM Limited, Calcutta were very much inputs in terms of Notification No. 201/79-C.E., as well as being components for the manufacture of the finished product. This was contrary to the order of the Superintendent of Central Excise, dated 5-1-1984 who observed that screw caps fitted on Horlicks bottles were not components. The Collector (Appeals) held that the packing of the Horlicks in bottles was not complete unless it was capped. Since tariff item IB central excise related to prepared and preserved foods put in unit containers and ordinarily intended for sale, the composition of packed Horlick bottles is not just Horlicks powder but also the metal screw caps, bottles, labels, seals, etc. Materials used in bringing a substance up to the excisable stage can safely to considered inputs.

2. The learned counsel for the department Mr. Sundar Rajan argued that a screw cap can never be a component part or an ingredient of the contents of these goods, meaning the Horlicks, which is a health drink