Karnataka - Bangalore   

Alcoholic beverages can be classified as food and drinks: HC

Staff Reporter

Bangalore: The Karnataka High Court on Wednesday said that alcoholic beverages come under the classification of food and drinks, which is liable for exemption from Commercial Tax. The order was passed by a Division Bench comprising Justice H.L. Dattu and Justice A.S. Bopanna.

The court made the observation while hearing a petition filed by Shakthi Hill Resorts, which challenged levy of tax by the Commercial Taxes Department. The petitioner (resort) contended that the Commercial Taxes authority had levied taxes for turnovers of over Rs. 25 lakhs each for 1998-99 and 1999-00. The petitioner contended that he had approached various appellate bodies, but in vain and challenged the levy on the ground that he was liable for exemption for the alcoholic beverages.

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