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2014 (11) TMI 1045 - HC - VAT and Sales TaxRate of VAT on sale of Appy Fizz. Treating the product as fruit juice, an item falling under entry 71(2) of SRO No.82/2006 - the petitioner paid tax @12.5%. However, proceedings were initiated under Section 25 of the KVAT Act proposing to levy tax @20%, treating the product as an aerated branded soft drink, falling under Section 6(1)(a) of the KVAT Act. - Held that:- the product is an aerated soft drink and the fruit juice is added as a flavouring agent, which cannot alter the character of the product. In Entry 71(1) of SRO 82/06, the aerated products included are aerated water and soda water. Fruit juice included in entry 71(2) and soft drinks included in entry 71(3) are all products which are not aerated. This, therefore, makes it clear that aerated products, except those which are specifically included in entry 71, are outside the purview of SRO No.82/06 and consequently, the product in question has to be treated as an aerated branded soft drink coming within the purview of Section 6(1)(a) of the KVAT Act. - Decided against the assessee.
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