The Hindu : Instant tea liable for cess: SC

Online edition of India's National Newspaper
Tuesday, May 07, 2002

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Instant tea liable for cess: SC

By T. Padmanabha Rao

NEW DELHI MAY 6. Holding that the term, `instant tea', ``is not the brand name of the product manufactured by the assessee (respondent-company) but the name of the product itself'' and ``it (instant tea) is a variety of tea,'' the Supreme Court has ruled that ``instant tea manufactured and exported by the respondent is liable for levy of cess under Section 25 of the Tea Act, 1953.''

Delivering the judgment, Shivraj V. Patil set aside an order of the Central Excise and a Gold Control Appellant Tribunal (CEGAT) which held that ``instant tea cannot be considered as `tea' with the meaning of relevant provision — Section 3(n) of the Act.''

Allowing a group of appeals from the Central Excise authorities concerned, the Bench which included N. Santosh Hegde, said that ``the manner of preparation of tea and the process of manufacture of instant tea powder cannot take away `instant tea' out of definition of `tea' under the Act,'' adding that ``ultimately instant tea is produced from the leaves of the plant Camellia Sinensis (L) O.Kuntze.'' Further, the term `instant tea' gives a meaning that ``it is a tea which can be prepared/used instantaneously'' and ``merely because the product is know as `instant tea', it does not cease to be known commercially as tea — whether tea is consumed as a hot beverage or a cold beverage depending upon one's liking and taste,'' the Bench said. ``When the Tea Act defined `tea' specifically the Tribunal ought not to have strained itself by referring to other enactments — such as Prevention of Food Adulteration Act — to construe `instant tea' as the product not included within the definition of `tea' under the Act,'' the Bench noted, adding that the very name `instant tea', `` conveys it is a tea.''

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