Supreme Court Sweetens Deal for Rooh Afza, Citing Fruit Connection
Supreme Court Sweetens Deal for Rooh Afza, Citing Fruit Connection New Delhi: In a significant verdict that will likely bring a sigh of relief to beverage manufacturers and consumers alike, the Supreme Court has ruled that the iconic summer cooler, Rooh Afza , will attract a lower 4% Value Added Tax (VAT) under the Uttar Pradesh VAT Act , classifying it as a "fruit drink." The decision overturns previous higher tax assessments, potentially making the popular concentrate more affordable in the state. The apex court's judgment centered on a nuanced interpretation of what constitutes a fruit-based beverage for taxation purposes. While Rooh Afza is renowned for its unique blend of herbs, fruits, and floral extracts, its classification under various tax regimes has often been a point of contention. Manufacturers have long argued that the presence of fruit essences and extracts should qualify it for lower tax rates typically applied to fruit juices and fruit-based drinks, rath...