Sales tax classification of beverage powder turns on ordinary commercial meaning; a mix-for-drink product is not itself a beverage.

A powdered product that must be mixed with water before consumption is not a "beverage" in its ordinary commercial sense, because the taxed entry covers goods that are themselves liquid drinks sold as such. The later legislative insertion expressly covering soft drink powders, tablets and crystals supports the view that such products were not already included in the earlier entry. On that basis, the product did not fall within entry 33(2) of Schedule C as a non-alcoholic beverage sold in sealed containers, and the classification question was answered in favour of the assessee.

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Issues: Whether a powdered product from which a non-alcoholic beverage can be prepared falls within entry 33(2) of Schedule C to the Bombay Sales Tax Act, 1959 as a non-alcoholic beverage sold in sealed containers.

Analysis: The expression "beverages" was construed in its ordinary commercial sense as a liquid meant for drinking. The product in question was not sold as a liquid drink but as a powder to be mixed with potable water before consumption. On that footing, it was not itself a beverage, though it could be used to prepare one. The later legislative insertion specifically covering soft drink powders, tablets and crystals reinforced that such products were not already included in the earlier entry. Since entry 6 of Schedule E was not in dispute and the product did not fit entry 33(2), it would fall within the residuary entry only if not otherwise covered.

Conclusion: The product was not covered by entry 33(2) of Schedule C and was not to be treated as a non-alcoholic beverage for that purpose; the answer was in favour of the assessee.

Final Conclusion: The reference was answered against the Revenue on the principal classification question, with the product held taxable outside entry 33(2) as a powder and not as a beverage.

Ratio Decidendi: A product is not a beverage merely because it can be converted into a drink on admixture with water; for sales tax classification, the goods must themselves answer the ordinary commercial description of the taxed entry.

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