Revisional power and soft drink classification: nannari syrup was treated as falling within the relevant sales tax entry.

Revisional powers under the Tamil Nadu General Sales Tax Act were treated as broad enough to alter the classification of goods and refix tax on the same turnover, provided no fresh escaped turnover was brought to tax; on that basis, the jurisdictional objection failed. Applying the schedule entry for bottled or packed soft drinks sold under a brand name, nannari syrup was held to fall within item 91 because it answered the statutory description even though it was used after dilution. The commentary notes that the revised classification was upheld and the assessee's contrary claim was rejected.

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Issues: (i) whether the revisional authority could refix the tax liability on the same turnover by altering the classification of the goods, and (ii) whether nannari syrup fell under item 91 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959.

Issue (i): whether the revisional authority could refix the tax liability on the same turnover by altering the classification of the goods.

Analysis: The power under section 34 of the Tamil Nadu General Sales Tax Act, 1959 was treated as wide enough to revise the order of a subordinate authority and to modify the tax liability without introducing any new turnover, so long as the case did not involve escaped turnover attracting section 16 of the Act. The turnover remained the same throughout, and the dispute was only whether the goods were taxable under one entry or another, or under section 3(1) rather than section 3(2).

Conclusion: The revisional authority had power to refix the assessment on the same turnover and the objection to jurisdiction failed.

Issue (ii): whether nannari syrup fell under item 91 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Item 91 covered bottled or packed soft drinks sold under a brand name, whether or not flavoured or sweetened and whether or not containing vegetable or fruit juices or fruit pulp. On that wording, nannari syrup, though used after dilution, was capable of falling within the description of bottled soft drinks. The earlier stand taken by the assessee also supported that classification.

Conclusion: Nannari syrup was correctly classified under item 91 of the First Schedule and was not taxable as claimed by the assessee.

Final Conclusion: The appeal failed, and the revisional order sustaining taxability under item 91 was upheld.

Ratio Decidendi: A revisional authority may alter the classification and refix tax liability on the same turnover without bringing escaped turnover to tax for the first time, and bottled syrup answering the statutory description of soft drinks falls within the relevant schedule entry.

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