2003 (8) TMI 508 - HC - VAT and Sales Tax

Summary

Issues:
Whether food colour and essences are taxable as foodstuffs or products under Notification No. ST-II-7218/X-6(43)-77 dated September 30, 1977?

Analysis:
1. The Tribunal concluded that food colour and essences were taxable as foodstuffs under the mentioned notification, relying on a previous judgment regarding "gulab jamun mix" being considered foodstuffs.
2. The definitions of food and foodstuff were explored, with references to dictionaries and legal precedents to understand the scope and interpretation of these terms.
3. The Supreme Court's stance on the taxation of items like food colour and essences was discussed, emphasizing the need to consider popular understanding and usage of such products.
4. Various cases were cited to illustrate the interpretation of foodstuff, highlighting that not all edible items automatically qualify as foodstuffs for taxation purposes.
5. The distinction between items like "food colour" and "essences" as additives for enhancing appearance and taste, rather than being nutritive, was crucial in determining their classification as foodstuffs.
6. The judgment emphasized that the addition of food colour and essences to edible items does not automatically categorize them as foodstuffs under the relevant notifications.
7. The Tribunal's decision was overturned, stating that "food colour" and "essences" do not meet the criteria to be considered as foodstuffs within the legal framework, leading to the allowance of the revisions in favor of the department.

This comprehensive analysis delves into the legal intricacies surrounding the taxation of food colour and essences, providing a detailed examination of the definitions, precedents, and interpretations that guided the final judgment.