TaxTMI 
TaxTMI 
2005 (2) TMI 797
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.... Referring to entry 87 of Schedule I of the Kerala General Sales Tax Act, 1963 (for short, "the KGST Act"), it was held that soda is taxable in the said entry, and, then, on a question of fact, it was held that the sales were not exigible to sales tax in the said case, as the sales tax already suffered and being single point tax, second sales were held to be not liable to tax. There were no arguments that soda is not traceable to entry 87, but taking that the above case laid down a proposition that sale of soda in bar-attached hotels attracts sales tax in entry 87, another division Bench, in T.RC. No. 99 of 1999 [Deputy Commissioner (Law), Commercial Taxes, Ernakulam v. Sannidhanam Bar and Restaurant [2004] 138 STC 380 (Ker)] held....
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....rnvita, Complan, Glucose-D, Glucovita and similar items whether or not bottled, canned or packed. At the point of first sale in the State From January 1, 2000 the entry changes to 141, which reads as follows: 20 141 Squashes, sauces, fruit juices, fruit pulp, soda, mineral water, Horlicks, Boost, Bournvita, Complan, Glucose D, Glucovita and similar other items whether or not bottled, canned or packed. At the point of first sale in the State 4. The above entries dealt with the impost of sales tax on sale of goods mentioned therein and relevant for the instant adjudication is the word "aerated waters" in entry 87, "soda" in entry 124A and again "soda" in entry 141 basing upon the amendments from time to time....
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....of soda at bar-attached hotels is traceable to entry 40/46 and not entry 87/124A/141. 6.. Mr. Raju Joseph, learned Government Pleader (Taxes), counters the above argument and submits that specific entry is entry 87/124A/141 and not entry 40/46 and there is no indication by the Legislature that sale of soda was to be taxed differently when served at bar-attached hotels and that the word "beverages" has to be understood as cooked beverages and that soda, by no stretch of imagination, can be brought within the ambit of cooked beverages and that, consequently, it is only traceable to entry 87/124A/141. 7.. Special law prevails over general law is a settled proposition. Likewise, in taxation laws, special entries of impost always pre....
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....; 8. In the light of the above legal principles, we proceed further to consider as to whether there is any ambiguity in entries 87/124A/ 141 or the other entries 40/46 and also as to whether soda is clearly covered by entry 40/46 or entry 87/124A/141. 9. Relevant is the word "beverages". In generic sense, any potable liquid except water is a beverage. Beverage may be alcoholic or non-alcoholic. Again, among non-alcoholic, it may be hot beverage like tea, coffee or cold beverage like cola and soda. Beverages like cola and soda come within the meaning of "aerated waters". Aerate is a process of exposing product to air for the purpose of mixing with air. Water mixed or charged with gas or air under pressure is "aera....
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....meaning of "beverages" as being related and inclusive of cooked food in entries 40/46. Reference to some case law relating to interpretation of word "cooked food" may be relevant. 12.. In Annapurna Biscuit (Mfg.) Co. v. State of U.P. [1975] 35 STC 127, Allahabad High Court was dealing with the point whether biscuit is either a "cooked food" or "sweetmeats" or "confectionary". The sales tax authorities construed biscuit as a confectionary and the same was set aside by the court. In Commissioner of Sales Tax v. Jassu Ram Bakery Dealer [1976] 38 STC 461 (All.), the same question arose as to whether biscuit comes within the category of "cooked food". It was held that biscuit did not ....