Commissioner of Sales Tax Vs Sudha Instant Soft Drinks and Essences (Bombay High Court)
The Bombay High Court addressed a reference under Section 61 of the Bombay Sales Tax Act, 1959 regarding whether processed products like pineapple slices, pineapple tidbits, and fruit cocktail preserved in sugar syrup and canned in vacuum-sealed containers could be classified as “fresh fruits” under Entry A-23 of the Act, thereby qualifying for sales tax exemption. The reference arose from a dispute between the Revenue and the assessee, Sudha Instant Soft Drinks and Essences, a manufacturer of juices, soft drinks, and processed foods including pineapple slices, pineapple tidbits, fruit cocktail, tomato juice, mango juice, and sweetcorn.
The assessee had previously been granted sales tax exemption under a 1979 Scheme of Incentives. However, during the assessment for the period 1991-92, exemption benefits were disallowed for items not explicitly mentioned in the eligibility certificate, including pineapple slices, pineapple tidbits, and fruit cocktail. The Maharashtra Sales Tax Tribunal, relying on the Supreme Court decision in Deputy Commissioner, Sales Tax v. Pio Food Packers, held that pineapple slices and similar products could be classified as “fresh fruits” under Entry A-23 and granted exemption, prompting the present reference by the Revenue.
