LexM/S. PIOMA INDUSTRIES ETC. ETC. versus STATE OF KERALA
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
(2008] 11 S.C.R. 355 .., MIS. PIOMA INDUSTRIES ETC. ETC. A v. STATE OF KERALA (Civil Appeal No. 4639 of 2008) JULY 25, 2008 B .._ "*- [DR. ARIJIT PASYAT AND P. SATHASIVAM, JJ.] Kera/a General Sa/es Tax Act, 1963 - Schedule I, En- tries 56 and 57 (for year 1997-98) Entries 124 A (for the year 1999-2000) - 'Rasna' - Taxability- Whether as a 'beverage' c or 'non-alcoho~ic drink' - Plea of assesseee that it is taxable as 'vegetative food preparation' or 'beverage' but not 'non-a/- coholic drink' - Authorities/Courts below holding it as 'non-a/- coholic drink' - Held: the assessing authority did not consider whether the article could be a 'beverage' - Effect of introduc- D tion of entries 124A and 141 also not considered - Hence matter remitted to Tribunal. The question for consideration was whether 'Rasna' is taxable as 'beverage' or 'non-alcoholic drink'. The au- thorities and courts below had held that the same was a E 'non-alcoholic drink'. Hence the present appeal. Partly allowing the appeal, the Court HELD: The assessee had taken the stand that the article in question was 'vegetative food preparation' and F ----+ in the alternative it was a 'beverage'. The stand taken by the appellants about the article being 'beverage' has not been specifically considered by the assessing authority, the first appellate authority, the Tribunal and the High Court. Whether a particular article can be called as a 'bev- G erage' has to be factually decided. Similarly, the effect of ~ the introduction of the Entries 124A and 141 in the As- - "( sessment year 1999-2000 has not been considered. There- fore, the effect of the change from 1.1.2000 has also not 355 H 356 SUPREME COURT REPORTS [2008] 11 S.C.R. "" A been considered and has not been analysed. In the cir- cumstances, the matter is remitted to the Tribunal to ex- amine whether 'Rasna' can be treated as 'beverage' for the assessment year 1997-98; and what is the effect of the Entries 124A and 141 vis-a-vis· Entry 97 for the Assess- B ment year 1999-2000. [Paras 7 and 8] [359-H; 360-A-C] CIVILAPPELLATE JURISDICTION: CivilAppealNo. 4639 ~ of.2008 From the final Judgment ~nd Order dated 3.8.2005 of the c High, Court of Kerala at Ernakulam in ST. Rev. Nos. 271 and .353 of 2003 and 320 of 2005 Mathai M. Paikeday, Shishir Pinaki, Amit Singh and Sanjay · Jain for the Appellant. JD T.L.V. Iyer, P.V. Dinesh and T.P. Sindhu for the·R_espon- dent. The Judgment of the Court was delivered by· · DR. ·ARIJIT.'PASAYAT, J. 1. Leave granted. E 2. Challenge in this appeal is to the judgment of a Division Bench of the Kerala High Court dismissing two revision petitions filed by the appellants i.e. Mis. Pjoma Industries, and Mis. Rasna Pvt. Ltd. The assessment years involved are 1997- F. 98 and 1999-2000. The dispute lies within a very narrow com- pass. 3. The question is whether "Rasna" is taxable as a 'bever- age' or 'non-alcoholic drink'. For the two assessment yea,rs the . relevant entries were Entry 56 and Entry 87 respectively for the G . year 1997-98 and forthe year 1999-2000Entry12~A. 141 and .. 97 respectively. The assessing officer, the first Appel.late Au- .. thority, the Tribunal and the High·Court held that "Rasna" is to I>- ·be taxed as 'non-Alcoholic drinl<'. · .,,, ... 4. According to the learned counsel for the appellants, H 'Rasna' is a powder which is nothing but a soft drink concen- · M/S. PIOMA INDUSTRIES ETC. v. STATE 357 OF KERALA [DR. ARIJIT PASAYAT, J.] trate and cannot be taken to be as 'non-alcqholic drink'. It is A nothing but a fruit in a powder form and a vegetative food prepa- ration. It is pointed out that the legislature in its wisdom· has taken out some of the items which were earlier in Entry 87 and have grouped them together under different Entries. 5. Learned counsel for the respondent-State on the other 8 ... -1. hand submitted that by no stretch of imagination 'Rasna' has been treated as 'food or vegetative' and has therefore been rightly assessed as 'non alcoholic drink'. , ·~ 6. Entries for the two relevant assessment years read as . c follows: In the year 1997-98 I Entry Details of goods Point of levy Rate of , No. tax 56. Food including vegetative or At the point of 12.5% D animal preparations sold in first sale in the airtight containers and food State by a colours, essences of all kinds dealer who is and powders or tablets used liable to tax un- for making f
Excerpt shown. Read the full judgment & AI analysis in Lexace.