Strict construction of beverage tax entry excludes non-liquid GRD powder and GRD bix from taxation

A fiscal entry taxing non-alcoholic drinks and beverages was construed strictly, and "beverage" was given its ordinary common-parlance meaning as a potable liquid other than water. The wording of the relevant entries, including references to syrups, cordials, distilled juices, ark and essences, showed an intent to cover liquid products. Because GRD powder and GRD bix were not in liquid form, they could not be brought within the taxing entries by inference or analogy. They were therefore held outside the scope of the impugned provisions and not taxable as non-alcoholic drinks or beverages.

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Issues: Whether GRD powder and GRD bix fall within the expression "non-alcoholic drink and beverage" under entry 20(ii) of Part IV of Schedule II of the Madhya Pradesh Commercial Tax Act, 1994 and entry 14 of Schedule II of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976.

Analysis: The entry taxing non-alcoholic drinks and beverages was construed strictly. The expression "beverage" was held to bear its ordinary and common parlance meaning, namely a potable liquid other than water. The wording of the entries, including the reference to syrups, cordials, distilled juices, ark and essences, indicated that the legislative intent was to cover liquid products. GRD powder and GRD bix were admittedly not in liquid form and therefore could not be brought within the specific entries by inference or analogy.

Conclusion: GRD powder and GRD bix do not fall within the impugned taxing entries and are not taxable as non-alcoholic drinks or beverages under those provisions.

Ratio Decidendi: A fiscal entry covering beverages must be strictly construed, and unless the goods are clearly shown to answer the common parlance meaning of a liquid beverage, they cannot be taxed under that specific entry.

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