Classification of goods: common parlance and essential character tests support residuary entry classification, so beverage taxed under residuary entry.

Classification of goods under VAT was resolved by applying the common parlance and essential character tests to determine that 'Sharbat Rooh Afza' does not constitute fruit juice, fruit drink or processed fruit; consequently the Tribunal lawfully applied the residuary entry of Schedule V, attracting the stipulated tax rate. The High Court held the present revision covered by an earlier decision which applied identical tests and concluded similarly, and therefore answered the classification issue against the assessee and in favour of the revenue.

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Issues: Whether the Commercial Tax Tribunal was legally justified in classifying the product 'Sharbat Rooh Afza' under the residuary entry (Entry 1 of Schedule V of the U.P. VAT Act) instead of under Entry 103 of Part A of Schedule II.

Analysis: The Court noted that the identical controversy was earlier decided by this Court in Sales/Trade Tax Revision No. 617 of 2012 by order dated 02.07.2018 and that no contrary decision has been placed before it. The earlier decision examined whether the product falls within specific entries of Schedules I-IV or Schedule II Entry 103, applied the tests relevant to classification of goods (including common parlance and essential character), and determined that the commodity 'Sharbat Rooh Afza' does not fall within entries for fruit juice, fruit drink or processed fruit. The Tribunal's classification placed the product as an unclassified commodity under the residuary entry of Schedule V, attracting tax at 12.5%, and the Court found the present revision squarely covered by and answerable on the same terms as the earlier pronouncement.

Conclusion: The issue is answered against the assessee and in favour of the revenue; the Tribunal was legally justified in classifying 'Sharbat Rooh Afza' under the residuary entry of Schedule V.

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