TaxTMI 
TaxTMI 
2011 (8) TMI 1024
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....aforesaid question briefly stated are that the petitioner-company is a pharmaceutical company registered under the provisions of the Companies Act, 1956. The petitioner-company deals in drugs and medicines and food supplements carrying brand names "GRD powder and GRD bix". The petitioner-company is registered as a dealer under the provisions of the 1994 Act. The petitioner-company filed the return and paid commercial tax at eight per cent of total turnover in respect of GRD powder and GRD bix, treating the same as goods falling under residuary clause in Part IV of Schedule II of the Act as goods not included in any other Part of Schedule II or Schedule I of the 1994 Act. During the course of assessment proceedings for the period from April 1, 1997 to March 31, 1998, an explanation was sought from the petitioners as to why sales of GRD powder and GRD bix be not taxed at ten per cent being covered under entry 20(ii) of Part IV of Schedule II of the 1994 Act. The petitioners filed their response to the explanation inter pointing out that the products in question are not covered under the aforesaid entry. It was stated that products in question are food supplements which are sold by....
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....ner and has submitted that the assessing and revisional authorities have considered the matter in detail and have given cogent reasons. All aspects of the issue have been elaborately considered. It is also submitted that from perusal of documents filed by the petitioner itself, it is clear that the petitioner is marketing the product as beverage. A beverage is not required necessarily to be in liquid form, and the end-use of product will determine the nature of product. He has further submitted that the relevant entries are broad and inclusive. In support of his submission, learned Additional Advocate-General has relied on the decisions reported in Collector of Central Excise, Bombay I v. Park Exports (P) Ltd. [1989] 75 STC 105 (SC) ; [1989] 1 SCC 345, Hamdard (Wakf) Laboratories v. Collector of Central Excise, Meerut [1999] 6 SCC 617, Pioma Industries v. State of Kerala [2008] 16 VST 468 (SC) ; [2008] 12 SCC 695, S. Samuel, M. D. Harrisons Malayalam v. Union of India [2003] 1 RC 971 ; [2004] 134 STC 610 (SC) ; [2004] 1 SCC 256. We have considered the submissions made on both sides. It is well established rule of statutory interpretation that a taxing statute has to be construed....
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....(SC) was whether "Sharbat Rooh Afza" can be treated as beverage. In the aforesaid context, in paragraph 5, the Supreme Court held that beverage broadly speaking, are liquid for drinking, other than water, which may be consumed neat or after dilution. Similarly, the Division Bench of the Bombay High Court in a decision reported in Commissioner of Sales Tax v. Food Specialities Ltd. [1995] 97 STC 407 held that beverage as commonly understood, means any liquid for drinking other than water. The Division Bench of the High Court of Kerala while considering the question whether coffee which is sold under the brand name of "Bru" can be treated as a beverage, answered the aforesaid question in the negative and held that words in everyday use when come up for interpretation before the court have to be understood in their popular sense. Another Division Bench of the High Court of Kerala in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. P. Sukumaran [1989] 74 STC 185 has held that since 'Rasna' is only a concentrate and not a liquid, therefore, it would not come within the ambit of the expression "beverage". In the backdrop of well-settled princip....
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....to its meaning as described in dictionaries, as the same has not been described in the Act. In Random House Unabridged Dictionary, Second Edition, word "beverage" has been described to mean any potable liquid especially one other than water, as tea, coffee, beer or milk. In New English Dictionary and Thesaurus published by Geddes and Grosset, "beverage" is described a drink especially one other than water. Similarly Chambers 21st Century Dictionary, word "beverage" has been described a prepared drink especially a hot drink, i.e., tea or coffee or an alcoholic drink. In New Concise Oxford English Dictionary, 11th Edition, "beverage" is described as a drink other than water. Thus, the expression "beverage" as is commonly understood means any liquid other than water, which may be consumed neat or after dilution. Thus, the products in question, namely, GRD powder and GRD bix which are admittedly not in liquid form cannot be said to fall within the relevant entries, namely, entry 20(ii) of Part IV of Schedule II of the 1994 Act and entry 14 of Schedule II of the Entry Tax Act. The decisions relied upon by the learned counsel for the Revenue are clearly distinguishable. In Collecto....