2009 (10) TMI 834

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... revision filed by the State is whether the Tribunal was justified in holding that the product sold by the respondent under the name "equal" in tablet and powder form attracts tax only at the rate of eight per cent under the residuary entry of the First Schedule to the Kerala General Sales Tax Act, 1963 as against the rate of 12 per cent applied by the assessing officer treating the assessed item .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the website of the respondent wherein the product is described in the website as "aspartame" which is composed of two amino acids (the building blocks of protein). The company claims that, in the body, aspartame breaks down into the amino acids aspartic acid and phenylalanine, as well as a small amount of methanol-components found naturally in foods like meats, milk, fruits and vegetables. It is f .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed from the company's own website. The item as such is not specifically covered by any of the entries. The question is whether the item falls under entry 62 which covers all kind of food preparations sold in airtight containers and food colours, essences, etc. For easy reference, entry 62 is extracted below: "62. Food including vegetative or animal preparations sold in airtight containers and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... g food preparation is contrary to the facts disclosed by the company in their website wherein they have stated that as many as 6000 food products are made with "equal" as an ingredient. Those familiar with the food products marketed in the United States of America and Europe are well aware that low calorie food preparations are extensively marketed by using sugar substitute as sweetening agent. In .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r and contended that a sugar substitute should not be subjected to tax at a higher rate, we are of the view that it is a matter of legislative policy and the court cannot apply the rate of tax of sugar to sugar substitute. In view of the finding above, we allow the sales tax revision by reversing the order of the Tribunal and by restoring the assessment of the product under entry 62 confirmed in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X