Common parlance test excludes food colours and essences from "foodstuffs" entry for concessional tax treatment.

The SC held that food colours and food essences used in manufacturing food products do not fall within Entry 56 of the relevant notification and therefore are not eligible for the concessional rate of tax. Applying the ordinary meaning and common parlance test, the Court construed "food" and "foodstuffs" as edible, nutritive substances or composite preparations taken as food in themselves. It found that colours and essences are not consumable as such, do not add nutritive value, and serve only an ancillary role in improving appearance, taste, or aroma. They were accordingly excluded from the entry.

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Issues: Whether food colours and food essences used in the manufacture of foodstuffs and food products fall within Entry 56 of Notification No. ST-II-7218/X-6(43)-77-U.P.Act XV/48-Order-77 dated 30.09.1977 so as to attract the concessional rate of tax.

Analysis: Entry 56 covered milk powder, condensed milk, baby milk, baby food and other foodstuffs or products sold in sealed or tinned containers. In interpreting the entry, the Court applied the ordinary meaning and common parlance test, holding that fiscal entries are to be understood as they are commonly understood by persons dealing in and consuming such goods. The words "food" and "foodstuffs" denote edible, nutritive substances or composite preparations taken as food, and not articles which merely improve appearance, taste, or aroma of other food products. Food colours and food essences are not consumable as such and do not enhance nutritive value; their role is only cosmetic or ancillary in improving the end product.

Conclusion: Food colours and food essences do not fall within Entry 56 and are not entitled to the concessional rate of tax.

Ratio Decidendi: A fiscal entry using the expression "foodstuffs" must be construed in common parlance, and articles which are not themselves edible or nutritive food, but only additives used to improve appearance, aroma, or taste of other food products, do not constitute foodstuffs for the purpose of the entry.

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