Classification of manufactured goods - Robinson Barley - Purity ...

'Robinson Barley' and 'Purity Barley' Classified as Distinct Products, Taxed at 12% Instead of 4% Cereal Rate.

August 18, 2022

Case Laws     VAT and Sales Tax     HC

Classification of manufactured goods - Robinson Barley - Purity Barley - There can be no doubt that in trade parlance ‘Robinson Barley and Purity Barley’ would not be simply understood as ‘barley’ - In other words, they are identifiable, distinct, commercial products different from ordinary ‘barley’. If a customer went to a shop and asked for barley, such customer would not be supplied Robinson Barley or Purity Barley. Conversely, if the customer was to ask for Robinson Barley or Purity Barley, then he would not be supplied with plain barley. - The distinct commercial product ‘Robinson Barley’ cannot be classified as ‘cereal’ which is taxable @4% and has to be brought under the residual entry taxable @ 12%. - HC

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