Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 125 - HC - VAT and Sales TaxClassification of goods - Mileage Drinking Powder - Whether in the facts and circumstances of the case of Rajasthan Tax Board was justified in law in classifying “Mileage Drinking Powder” at general rate and not the rate of tax for the specific entry in which it falls? - Held that: - the products as they stand, namely “Coco, Drinking Chocolate and Bournvita” or “Mileage Drinking Powder” cannot be straight away eaten or used directly but have to be mixed with milk or other drink. Eatable in normal parlance or common parlance is an item which can directly be taken through mouth - these products are not substitute for food though these products can be taken every day like adding flavour to the milk or otherwise but these are not taken as a food but only as nutritive supplant/element. By eating these products, hunger of a person does not come to an end and, therefore, to say that it is an eatable product, as claimed by the Revenue, is not well reasoned. These products as they stand, cannot be taken alone, but mostly mixed with milk or other drinks. By adding these products to milk, the taste of milk which normally the children do not like, enhances the taste and deliciousness of the milk and merely because these products supplies some nourishment or sustenance, it cannot be said to be an eatable product. It is true that these products are not used by common people and by & large taken by people other than common people - the claim of assessees that the above products do not fall in entry 184/186, is well reasoned - appeal dismissed - decided against Revenue.
|