Last Updated:
The HC has ruled that bakery snacks are not covered under the notification G.O.P.No.570 dated 10th June 1987 and thus not exempted from tax
The High Court was told that the petitioner would squarely fall under Entry 48 of III Schedule. (File for representation)
The Madras High Court recently held that bakery products do not fall under the exemption notification for sales tax.
Before the High Court, a petition was filed by a restaurant at No.32, Nungambakkam High Road, Chennai, which is involved in the activity of preparation of food and drinks. Admittedly, the food and drinks were not sold under any brand name.
Recommended Stories
It was contended that pursuant to the notification in G.O.P.No.570 dated 10th June 1987, selling of bakery products in a snack bar is exempted and therefore, the petitioner is entitled to the benefit of exemption under the said notification.
The Taxation Special Tribunal made a finding that bakery products sold by the assessee would fall under the heading “food and drinks” mentioned in the said Government Order and those items are being sold from a restaurant licensed by the Corporation of Chennai.
Contrary to the said finding of the Tamil Nadu Taxation Special Tribunal, Tamil Nadu Sales Tax Appellate Tribunal ruled that the petitioner was not eligible to avail the notification and thus a Writ Petition was instituted before the High Court.
The High Court was told that the petitioner would squarely fall under Entry 48 of III Schedule and therefore, the selling of bakery products are not covered under the exemption clause. Only tea, coffee, green tea as stipulated under Entry 48 of Schedule III alone are covered under the exemption notification and thus the appellate Tribunal was right in rejecting the claim of the petitioner, court was further told.
After going through the said provisions, the High Court’s bench of Justices SM Subramaniam and CS Saravanan noted, “Holistic reading of the above items stipulated under Sl.No.9 to 1st Schedule would indicate that the bakery products are not included and thus would not fall under the exemption notification. In fact, the bakery products are stated in I Schedule of Part B of Sl.No.11. The said Sl.No.11 of part B of I Schedule has not been exempted under the notification. Therefore, the petitioner’s case would not fall under the exemption notification. Therefore, this Court has no hesitation in arriving at a conclusion that the Original Authority and the appellate Tribunal has rightly interpreted the exemption notification and the scope of its applications.”
It thus confirmed the order of the Tribunal and dismissed the petition before it.
About the Author
Aishwarya Iyer, Legal Correspondent at Lawbeat, covers the Supreme Court, and her meticulous understanding of complex judgments and orders leads to impeccable news reports. She has worked with leading media org…Read More
Aishwarya Iyer, Legal Correspondent at Lawbeat, covers the Supreme Court, and her meticulous understanding of complex judgments and orders leads to impeccable news reports. She has worked with leading media org… Read More
September 29, 2025, 19:22 IST
Loading comments…
Read More
