Specific tariff entry for beverage powders prevails over residuary classification for marketed health drink products.

Products described as health drinks were treated as powders from which non-alcoholic beverages are prepared, because they were used to make drinkable mixtures with water, milk or juice and fell within the clear wording of Schedule Entry C-107(11)(g) of the Maharashtra VAT Act. The fact that they were marketed to a particular consumer segment did not take them outside the ordinary meaning of beverages. The residuary Schedule Entry E-1 applied only where no specific entry covered the goods, and the specific entry prevailed over the general residuary entry. The common parlance test did not assist the Revenue on these facts.

---

---

Issues: Whether the products in question were classifiable under Schedule Entry C-107(11)(g) of the Maharashtra Value Added Tax Act, 2002 as powders from which non-alcoholic beverages are prepared, or under the residuary Schedule Entry E-1.

Analysis: The entry for powders, tablets, cubes, crystals and other solids or liquids from which non-alcoholic beverages and soups are prepared was held to be clear and unambiguous. The products were found to be powders from which drinkable mixtures were prepared with water, milk or juice, and the fact that they were marketed as health drinks or targeted to a particular consumer segment did not take them outside the ordinary meaning of beverages. The residuary entry could be applied only when the specific entry did not cover the goods, and a specific entry was found to override the general residuary entry. The principle of common parlance did not aid the Revenue on the facts.

Conclusion: The products were held classifiable under Schedule Entry C-107(11)(g) and taxable at 5%, not under Schedule Entry E-1.

---