PARLE AGRO PRIVATE LIMITED Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The taxability of drink called as "frooti" under Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 1976 (hereinafter called as 'the Act of 1976') being non-alcoholic beverage at the rate of 2% held concurrently by the assessing authority and the revisional authority has been questioned by the writ petitioners in this writ petition stating that "frooti" being a product of fruit falls in residual entry of Schedule II of the Act of 1976 and liable to be taxed at the rate of 1%, therefore, the orders passed by the authorities levying and recovering tax at the rate of 2% are liable to be set aside.

(2.) Mr.P.M. Choudhari, learned Senior Counsel appearing for the petitioners, would submit that the order passed by the assessing authority and affirmed by the revisional authority following and complying the determination order dated 30.9.2005 passed by the Commissioner of Commercial Tax under Section 68 of the Commercial Tax Act, 1994 (hereinafter called as 'the Act of 1994') read with the provisions of the Act of 1976 is unsustainable and bad in law. He would further submit that "frooti" being a fruit juice based ready to serve drink, the same in view of the treatment under the laws regulating manufacture and sale of fruit products as also treatment given to such products by the legislature, cannot be classified in the category of 'non-alcoholic beverages and drinks'. He would also submit that there is no specific entry for classification of fruit products/fruit juice based ready to serve drinks, the commodity frooti is outside Schedule II of the Entry Tax Act and would fall in Schedule III of the Act of 1976 and accordingly, it is not liable to tax in view of the scheme of charging section under the Act of 1976, as such, he would strongly rely upon the decisions of the Supreme Court in the matter of Parle Agro Private Limited v. Commissioner of Commercial Taxes, Trivandrum, 2017 7 SCC 540.

(3.) On the other hand, Mr.Anand Dadariya, learned Deputy Government Advocate for the respondents/State, would support the impugned order and submit that "frooti" is nothing but a kind of beverage and is taxable under Entry 14 of Schedule II at the rate of 2% and the assessing authority as well as the revisional authority were absolutely justified in rejecting the plea raised by the petitioners in this regard.