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2014 (3) TMI 821 - SC - VAT and Sales TaxReduction of Rate of Tax - `Whether food colours and food essences used in the manufacturing of foodstuffs and food products would fall under Entry 56 of the Notification No. ST-2-7218/10/6(43)/77, dated 30.09.1977' - Held that:- The words "food" and "foodstuff" are used interchangeably - Any reference to "food" in common parlance suggests a substance or composite preparation which constitutes a meal to satiate hunger - The two products are either chemically manufactured or processed after their islolation from a plant and therefore, available as retail products in their concentrated forms - Thus, the food colours and essences cannot be consumed as such and their addition to any foodstuff is basically to ornamentally improve the end-product by making it attractive and impressive - The purpose behind their addition is to aid appetite by pleasing ones olfactory and ocular senses - Insofar as food essence is concerned, it also aids in improvement of the taste of the food product - They have no relation to enhancing the nutritive value of food and only cosmetically aid in enhancing the aesthetic value of the food product. Food colours and food essences have not been considered to be foodstuff or a combination of the foodstuffs by either lexicographers or in common parlance and the two by no stretch of imagination would constitute "foodstuff" The claim of the assessee that "food colours" and "food essences" are "foodstuffs" within the meaning of the notification was rightly rejected by High Court - High Court has not committed any error Appeal dismissed Decided in favour of Revenue.
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