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2016 (5) TMI 522 - HC - VAT and Sales TaxClassification and applicable rate of tax - period involved is 15-01-2011 to 31-03-2013 - Whether the non-alcoholic beverage concentrate in powder form are to be classified under Schedule Entry C-107 (11)(g), which is exigible to tax @ 5% OR whether the under Residuary Schedule Entry E-1, which is exigible to tax @ 12.5%. Held that:- there is no dispute that the said products of the Respondent-Dealers are `powders' from which ‘nonalcoholic’ drinks are prepared for the purpose of consumption by mixing the said powders with liquids like water, milk, juice, etc. In our view, there is no warrant for restricting the meaning of term “beverages” in the Schedule Entry C-107 (11)(g) as sought to be contended by the learned Counsel for the Appellant. The Entry is clear and unambiguous and is couched with the non-technical word “beverages”, which has to be understood in its ordinary meaning. The meaning of “beverage” as stated in the Concise Oxford English Dictionary is “drink other than water”. The question is, while construing the Entry as it stands, would the drinks made from the said powders be any less of “beverages” because they are “health drinks”? We think not! Merely because a drink has more nutritive value in the form of proteins and meant for a certain class of consumers, it would not cease to be a “beverage”. even if the potable drink made from the said powders are perceived as health drink, it does not fall out of the purview of the Entry. It has been held by the Supreme Court in State of Maharashtra v/s. Bradma of India Ltd. (2005) 2 SCC 669 that the residuary entry could be resorted to only when by a liberal construction the specific entry cannot cover the goods in question. In the present case, in view of the specific Entry 107-C (11)(g) to the Statute, it would override the general Entry. Even otherwise, we do not think that the drink prepared from the said powders can be excluded from the term `beverages', even assuming that the principle of common parlance were to apply. Therefore, the Tribunal has rightly concluded that the `powders' of the Respondent is covered under Schedule Entry C-107 11(g) and no interference is warranted with the impugned order of the Tribunal. - Decided against the revenue
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