The Commissioner of Sales Tax vs. M/s. Neulife Nutrition System Pvt.Ltd., VAT Appeal No. 932of 2014, dated 6th May, 2016, Bombay High Court.

Facts
The Respondent dealer had filed an Application for determination u/s. 56 of the MVAT Act before the Commissioner of Sales Tax to decide the classification of its products and the rate of tax applicable for the relevant period i.e. 15-01-2011 to 31-03-2013. It had sought to determine the rates of tax applicable to ‘protein powders’.

It was the case of the Respondent-dealer, before the Commissioner of Sales Tax, that they were dealers in non-alcoholic beverage concentrate in powder form and the said products are general purpose protein powders from which non-alcoholic beverages are prepared. These powders are manufactured in USA and the proteins are obtained from those products which are remnants of cheese making process, these are sold in flavours, and, that the said products are covered under Schedule Entry No.C-107 (11)(g) of MVAT Act which are eligible to tax @ 5%. The Commissioner of Sales Tax, by his common order dated 18 July 2004, held that the said products were not covered by Schedule Entry C-107 (11) (g) of MVAT Act. Being aggrieved by the said order, the Respondent-dealer preferred two Appeals before the Tribunal. After hearing the parties, the Tribunal set aside the Commissioner’s order dated 18 July 2014 by allowing both the Appeals and held that the said products of the Respondent-dealer are classifiable under Schedule Entry C-107(11) (g) and liable for tax at the rate of 5%. Being aggrieved by the order of the Tribunal, the Appellant- Commissioner of Sales Tax has preferred the appeals before the Bombay High Court.

Held
It is well settled that the Entry in the Schedule is to be construed as it stands and when the Entry is clear and equivocal, it does not demand any outside interpretation. There can be no dispute that the said products of the Respondent- dealers are `powders’ from which ‘non-alcoholic’ drinks are prepared for the purpose of consumption by mixing the said powders with liquids like water, milk, juice, etc. There is no warrant for restricting the meaning of term “beverages” in Schedule Entry C-107 (11)(g) as sought to be contended by the learned Counsel for the Appellant. The Entry is clear and unambiguous. The Entry is couched with the non-technical word “beverages”, which has to be understood in its ordinary meaning. The meaning of “beverage” as stated in the Concise Oxford English Dictionary is “drink other than water”. 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”. Even if the potable drink made from the said powders are perceived as health drink, it does not fall out of the purview of the Entry. In view of the specific Entry 107-C (11)(g) to the Statute, it would override the general Entry. Even otherwise, the drink prepared from the said powders can be excluded from the term `beverages’, even assuming that the principle of common parlance were to apply, the Tribunal has rightly concluded that the `powders’ of the Respondent-Dealers are covered under Schedule Entry C-107 11(g) liable to tax @ 5%. Accordingly the High Court dismissed the appeal filed by the Department and confirmed the order of the Tribunal.