‘ Frooti ’ is a beverage, 2% Tax applicable under Chhattisgarh Entry Tax Act: Chhattisgarh HC [Read Judgment]

The Chhattisgarh High Court has held that, ‘ Frooti ’ is a beverage within Entry 14 of Schedule-II of the Chhattisgarh Entry Tax Act, 1976 and would be charged at the rate of 2%.

The Petitioner were challenged the taxability of drink called as “frooti” under Entry 14 of Schedule II of the Chhattisgarh Entry Tax Act, 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 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%.

While dismissing the petition, Justice Sanjay K. Agrawal observed that, “’frooti’ is beverage within Entry 14 of Schedule II of the Act of 1976 in the name being non-alcoholic drink and beverage, ice-cream and candy is of vide import and common parlance test would apply and the product “frooti” will be covered under Entry 14 of Schedule II of the Act of 1976 and would be charged at the rate of 2%”.

The Court also said that “the petitioners cannot be allowed to make separate entry when “frooti” is covered within the specific entry and residuary entry cannot be resorted into. In the considered opinion of this Court, both the authorities are absolutely justified in holding that “frooti” is a product covered by Entry 14 of Schedule II of the Act of 1976. I do not find any merit in the submission made on behalf of the petitioners in this writ petition”.