Product classification as a non-alcoholic beverage: frooti falls under the specific entry rather than the residuary head.

The classification of the commodity "frooti" was examined under the Chhattisgarh Entry Tax Act, 1976. Applying settled classification principles, the specific entry was held to prevail over the residuary entry, and the revenue bore the burden of showing the correct classification. On the product's ordinary and commercial meaning, its wide dictionary description of a beverage, and governmental clarification treating it as a ready-to-serve fruit beverage, the common parlance test supported classification as a non-alcoholic beverage. "Frooti" was therefore placed in Entry 14 of Schedule II and taxed at 2% rather than under the residuary entry at 1%.

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Issues: Whether the commodity "frooti" is classifiable under Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976 as a non-alcoholic beverage liable to entry tax at 2%, or whether it falls in the residuary entry and is taxable at 1%.

Analysis: The entry tax authorities had treated "frooti" as a beverage under Entry 14 of Schedule II, and the Court examined the settled principles governing classification of goods under taxing entries. A specific entry must be preferred to a residuary entry, and resort to the residuary head is permissible only when the goods clearly do not fit within any specific entry. The burden to establish the correct classification rests on the revenue, but the Court found that "frooti", in its ordinary and commercial sense, answers the description of a beverage. The dictionary meaning of beverage is wide enough to cover such a drink, and the product was also treated as a ready-to-serve fruit beverage in governmental clarification. The common parlance test, therefore, supported classification under the specific entry.

Conclusion: "Frooti" falls within Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976 and is taxable as a non-alcoholic beverage at 2%.

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