1998 (3) TMI 672 - HC - VAT and Sales Tax

Summary

Issues:
Classification of Glucovita/Glucose-D for tax assessment under the Kerala General Sales Tax Act, 1963.

Analysis:
The High Court of Kerala considered the issue of whether Glucovita/Glucose-D should be taxed under entry at serial No. 127 of the First Schedule to the Kerala General Sales Tax Act, 1963. The product in question is a powder form often mixed with water and given to children as a supplemental energy food, classified as a non-alcoholic drink. The court found that the product falls under the Explanation to the entry at serial No. 127 of the unamended First Schedule, which covers powders, tablets, and concentrates used for the preparation of non-alcoholic drinks, regardless of being bottled or canned.

The court also noted that an amendment to the First Schedule included Glucose-D/Glucovita under entry at serial No. 87, specifically listing various non-alcoholic drinks and similar items. This amendment, effective from April 1, 1992, further supported the classification of Glucovita/Glucose-D as it was previously considered analogous to the items mentioned in the unamended entry at serial No. 127. The court emphasized that the amendment was clarificatory in nature and highlighted the legislative intent behind the inclusion of Glucose-D/Glucovita in the entry at serial No. 87.

The Appellate Tribunal had rejected the classification of Glucose-D/Glucovita under the relevant entry, arguing that stretching the meaning of terms or language in the entries was necessary to include these items. However, the High Court disagreed with this interpretation, stating that Glucose-D and Glucovita were included in the entry at serial No. 87 due to their similarity with other products listed in the unamended First Schedule.

Ultimately, the High Court allowed the revision petition, quashed the Appellate Tribunal's order, and declared that Glucose-D and Glucovita should be assessed as classified items falling under the entry at serial No. 127 of the unamended First Schedule. The judgment clarified the legislative intent behind the classification and emphasized the nature of the products in question as non-alcoholic drinks akin to those listed in the relevant entries.