Case Law Details
Mr. P. M. Choudhary, Senior Advocate Vs. Mr. Anand Dadariya, Deputy Govt. Advocate (Chhattisgarh High Court)
Vide notification dated 24.9.2003, the Government of India, Ministry of Food Processing Industries has clarified that “Frooti”, “Maaza” and “Slice” are “Ready to serve Fruit Beverage” and that company has been allotted a FPO licence No. 11419 and further, the above products do not fall under the classification of either Aerated Waters or Carbonated Waters.
Following the principles of law laid down by the Supreme Court in A.R.Thermosets Private Limited’s case (supra) noticed hereinabove in which it has been held by Their Lordships that residuary entry is made to cover only those category of goods which clearly fall outside the ambit of the main entry, in the instant case, the determination order as well as two authorities have clearly held that “frooti” is beverage, which is apparent from dictionary meaning of beverage and is clearly covered within Entry 14 of Schedule II of the Act of 1976 being beverage and the authorities are justified in holding so.
Learned counsel for the petitioners placing reliance in Parle Agro Private Limited (supra) would submit that “frooti” would be outside of the said entry and would fall within residuary entry of schedule as common parlance meaning would be applied rather technical meaning would apply.
In the present case, “frooti” is beverage within Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976 in the name being non-alcoholic drink and beverage, ice-cream and candy is of vide import and common parlance test would apply and the product “frooti” will be covered under Entry 14 of Schedule II of the Act of 1976 and would be charged at the rate of 2%.
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