Sugar substitute classification: tablet and powder sweetener used in food preparations falls within the specific tax entry.

A sugar substitute in tablet and powder form containing aspartame was held to fall within entry 62 of the First Schedule to the Kerala General Sales Tax Act, 1963, because it functioned as a sweetening agent used in food preparations. The court noted that the manufacturer's description showed use in a wide range of food products, and the fact that it was also used in tea, coffee and other beverages did not take it outside the entry. It therefore rejected classification under the residuary entry and declined to apply the tax rate applicable to sugar on legislative policy grounds.

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Issues: Whether the product sold as a sugar substitute in tablet and powder form falls under entry 62 of the First Schedule to the Kerala General Sales Tax Act, 1963 or under the residuary entry.

Analysis: The product was a sugar substitute containing aspartame as the sweetening ingredient and was used as a sweetening agent in beverages and food preparations. The description published by the manufacturer showed that it was used in a wide range of food products, and the scope of entry 62 extended to powders or tablets used for making food preparations. The fact that it was also used in tea, coffee, and other beverages did not take it outside the entry, and the court declined to apply the tax rate applicable to sugar on grounds of legislative policy.

Conclusion: The product falls within entry 62 of the First Schedule to the Kerala General Sales Tax Act, 1963 and is not taxable under the residuary entry.

Ratio Decidendi: A sugar substitute in powder or tablet form that is used as a sweetening agent in food preparations is classifiable under the entry covering powders or tablets used for making food preparations.

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