Prasadam not excisable - Once the ladoos get the blessing of the lord, they are no more goods.
In his interesting speech laced with his poetry at the Silver Jubilee function of the Tribunal, Dr. SL Peeran, Member, CESTAT, Bangalore spoke of some interesting cases the Tribunal had to decide and he mentioned Tirupathi ladoos. While deciding the issue of prasadm in an order in 1992, Dr. Peeran observed,
a manufactured item should have a market and it should be sold. Sale implies a bargain and there is profitability and gain attached to it. There are no religious sentiments and the item is purchased by one and all. In the light of the intendment of the legislature to impose duty on goods which are brought to the market for sale the items 'Prasad' or 'Prasadam' cannot be considered as goods. The mere entry 'Prasad' or 'Prasadam' which is purely a religious offering made to the deity cannot be brought within the ambit of the Act. The mere specification in the tariff schedule will not make the item goods and exigible; merely because the devotee has purchased it from the temple precincts it cannot be considered as an exigible commodity. The item may be goods before they are taken for presentation to the deity and at that stage the excisability of the product could be considered. The said item before presentation to the deity would not be 'Prasad' or 'Prasadam' but it would be known in the stage in which it is. Therefore, the item, after it is presented to the deity by the temple authorities and offered to devotees on charges, cannot be considered as 'goods'. The term 'goods' as has been noted in the definitions, does not carry any religious sentiments nor does it have any blessings of deity. Goods are commodities which are brought to the market for sale, while the 'Prasad' or 'Prasadam' are the blessings of a deity which has a great religious significance. Therefore, in my opinion 'Prasad' or 'Prasadam' cannot be made exigible.
We bring you the text of Dr. Peeran's speech today.