No excise on bought out items placed in tray served in airlines

CA Urvashi Porwal Brief of the Case In the case of Taj Sats Air Catering Ltd. Vs. CCE, Delhi-II, it was held that the activity of placing various food items, prepared by the appellants as well as various bought out readymade items, in a tray either at the time of placing the tray in the trolley or at the time of serving the passengers on board does not amount to manufacture of a new commodity as contemplated under section 2 (f) of Central Excise Act, 1944 and accordingly the excise duty cannot be demanded on the total value of manufactured and bought products placed in the tray. Facts of the ...