Specific tax entry prevails for branded potato chips, displacing the residuary rate under the Tamil Nadu VAT Act.

Potato chips sold under a brand name were treated as processed vegetables because Entry 107 of Part B of the First Schedule specifically covers processed fruit and vegetables. The court applied the settled rule that a specific tariff or tax entry prevails over a residuary entry, and followed an earlier Division Bench view on identical goods. The departmental clarification treating branded chips as taxable at the higher residuary rate was not accepted, and the assessment order was set aside.

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Issues: Whether potato chips sold under a brand name are classifiable as processed vegetables under Entry 107 of Part B of the First Schedule to the Tamil Nadu Value Added Tax Act, 2006, or as goods falling under the residuary entry attracting tax at 12.5%.

Analysis: Potato chips were treated as processed vegetables. Entry 107 of Part B of the First Schedule specifically covers processed fruit and vegetables, and where a specific entry exists, the goods must be assessed under that entry rather than under a residuary provision. The earlier Division Bench view on identical goods was followed, and the departmental clarification treating branded chips as taxable at 12.5% was not accepted.

Conclusion: The chips were held to fall under Entry 107 of Part B of the First Schedule to the Tamil Nadu Value Added Tax Act, 2006 and not under the residuary entry at 12.5%; the impugned assessment order was unsustainable and was set aside.

Final Conclusion: The writ petition succeeded, and the tax demand based on the higher residuary rate was annulled.

Ratio Decidendi: Where goods are specifically covered by a taxable entry, that specific entry governs and the goods cannot be assessed under a residuary entry.

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