In Brief
Parle Agro manufactures 'Appy Fizz', a fruit juice-based drink with 10%+ apple juice. Tax authorities reclassified it as "aerated branded soft drink" at 20% VAT instead of the 12.5% rate for "fruit juice-based drinks." The Supreme Court held that 'Appy Fizz' is correctly classified as a fruit juice-based drink under Entry 71(5) of the Kerala VAT Act, not as an aerated branded soft drink under Section 6(1)(a). The Court emphasized that scientific and technical meanings (not just commercial parlance) apply to technical terms like "aerated," and that the CO2 in the product serves preservation purposes only. The judgment sets aside tax assessments and remits proceedings for consequential orders.
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