Supreme Court Declares Rooh Afza a Food Drink, Cuts VAT to 4%, Overturns Allahabad HC Order
Loading more articles...
Supreme Court: Rooh Afza is a Food Drink, VAT Slashed to 4%
C
CNBC TV18•25-02-2026, 19:37
Supreme Court: Rooh Afza is a Food Drink, VAT Slashed to 4%
•Supreme Court classifies Hamdard’s Rooh Afza as a “food drink/fruit drink” under Uttar Pradesh VAT framework.
•The ruling reduces VAT on Rooh Afza from 12.5% to a concessional 4% for relevant assessment years.
•This decision overturns an Allahabad High Court order that had treated Rooh Afza as an unclassified commodity with higher tax.
•The court reiterated that residuary tax entries should only be invoked when a product cannot be classified under a specific entry.
•The judgment has implications for legacy indirect tax disputes, particularly in the FMCG sector, and provides a reference point for pending classification cases.
