Tax classification of non-alcoholic beverages: wide meaning of "beverage" kept the product within the specific entry.

A product is to be classified under a specific taxing entry when it fits the entry in common parlance; the residuary entry applies only if no reasonable specific entry covers it. Applying that principle, the HC treated the drink as a non-alcoholic beverage within Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976. The wide meaning of "beverage" was held to include fruit juices and similar drinks, so the absence of an express reference to fruit juice did not justify resort to the residuary category. The authorities' classification was therefore upheld.

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Issues: Whether "Frooti" is classifiable under Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976 as a non-alcoholic drink or beverage, or whether it falls under the residuary entry.

Analysis: The classification turned on the interpretation of Entry 14, which covers all kinds of non-alcoholic drinks and beverages. The Court applied the settled principle that a residuary entry is to be invoked only when goods cannot reasonably be brought within a specific entry. It also applied the common parlance test and noted that the expression "beverage" has a wide meaning, extending to drinks other than water, including fruit juices and similar drinks. On that basis, the Court held that the product was correctly treated as a beverage and that the absence of an express mention of fruit juice in the entry did not justify shifting it to the residuary category.

Conclusion: "Frooti" falls within Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976 and is not taxable under the residuary entry; the classification made by the authorities was upheld.

Ratio Decidendi: Where a taxing entry is broad enough to cover the product in common parlance, the product must be classified under that specific entry and the residuary entry cannot be used.

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