HC rules on classification of protein powders, holds that same are taxable at 5% under Schedule Entry C-107 (11)(g) of MVAT Act as “Powders, Tablets, Cubes, Crystals and other solids or liquids from which non-alcoholic beverages and soups are prepared”; Rejects Revenue’s stand that absent specific entry which is applicable to these products, same shall be classifiable under Residuary Schedule Entry E-1 which is exigible to tax at 12.5%; Observes that said products are ‘powders’ from which ‘non-alcoholic’ drinks are prepared for purpose of consumption by mixing with liquids like water, milk and juice; Notes that Schedule Entry C-107 (11)(g) is couched with non-technical word “beverages” that has to be understood in its ordinary meaning, and“….Merely because a drink has more nutritive value in the form of proteins and meant for a certain class of consumers, it would not cease to be a “beverage”….”, holds HC; Referring to SC judgment in Bradma of India Ltd wherein it was held that residuary entry could be resorted to only when by a liberal construction the specific entry cannot cover the goods in question, HC upholds Tribunal order while stating that the drink prepared from said powders cannot be excluded from the term “beverages” even assuming application of common parlance principle : Bombay HC
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