Bread classification principle: rusk and toast fall within the bread entry, with residuary taxation available only as a last resort.

Rusk and toast were considered to fall within the generic entry for bread under Schedule I of the Chhattisgarh Value Added Tax Act, 2005, because the term bread was treated as covering forms with substantially the same ingredients and basic physical characteristics, even if the manufacturing process or moisture content differs. The residuary entry in Part IV of Schedule II was described as a last-resort classification, and the Revenue bore the burden of showing that the goods could not reasonably fit the specific entry. On that approach, rusk and toast were treated as bread and not as residuary goods, so the exemption treatment applicable to bread was affirmed.

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Issues: Whether rusk and toast are covered by the entry for bread in Schedule I of the Chhattisgarh Value Added Tax Act, 2005, or are liable to be classified under the residuary entry in Part IV of Schedule II.

Analysis: The broad entry for bread was held to be a generic entry capable of covering forms of bread having substantially the same ingredients and basic physical characteristics, despite differences in manufacturing process or moisture content. The residuary entry could be invoked only as a last resort, and the burden remained on the Revenue to establish that the goods could not reasonably fall within the specific entry. Applying these principles, rusk and toast were treated as falling within the wider concept of bread rather than the residuary category.

Conclusion: Rusk and toast are classifiable under the bread entry in Schedule I and are not taxable under the residuary entry.

Final Conclusion: The challenge to the single judge's view failed, and the exemption treatment applicable to bread was affirmed for rusk and toast.

Ratio Decidendi: Where a commodity reasonably answers a specific generic entry, the specific entry must prevail over the residuary entry, and the Revenue bears the burden of proving otherwise.

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