SC holds Product Classification Must Follow Its Form at the Time of Sale

The Supreme Court dismissed the Revenue’s appeals against the classification of Cadila Health Care’s GRD Powder and GRD Mix under the residuary entry of the Madhya Pradesh Commercial Tax Act, 1994. It held that the taxable character of goods must be determined by their form at the time of sale, and that products sold as powders or biscuits could not be brought within the beverage entry simply because they could subsequently be mixed with milk or water. The judgment reinforces the limits of end-use-based classification and the need to apply taxing entries according to their language.