Buttermilk classification prevails where kattimoru and sambharam retain their essential character despite dilution or flavouring

Kattimoru and sambharam were classified as buttermilk under entry 49 of the Kerala General Sales Tax Act First Schedule because both products retained the essential character of buttermilk, despite differences in concentration and minor flavouring additives. The Court held that the specific entry for curd and buttermilk governed the classification, and the residuary entry could not be used where the goods were already covered by a specific schedule entry. The higher-taxed milk products entry was therefore inapplicable, and the clarification to the contrary was set aside in favour of the assessee.

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Issues: Whether the products marketed as kattimoru and sambharam are classifiable as buttermilk under entry 49 of the First Schedule to the Kerala General Sales Tax Act, 1963, or whether they fall under the higher-taxed milk products entry or the residuary entry.

Analysis: The products were described in the labels and accompanying materials as thick buttermilk and diluted buttermilk, with flavouring ingredients added to sambharam only for taste. On the material placed before the Court, both goods retained their essential character as buttermilk, differing only in concentration and minor additives. The specific entry for curd and buttermilk was therefore the appropriate classification, and the residuary entry could not be invoked when the goods were already covered by a specific schedule entry. The lower rate applicable to buttermilk also aligned with the legislative scheme reflected in the First Schedule.

Conclusion: The products were held to fall under entry 49 as buttermilk and not under the higher-taxed milk products entry or the residuary entry; the clarification to the contrary was set aside in favour of the assessee.

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