Bombay High Court Rules Nescafé Premix Is Instant Coffee, Eligible for Lower Sales Tax Rate

• The Bombay High Court ruled that Nescafé Premix is classifiable as instant coffee, not a general beverage powder, under the Bombay Sales Tax Act.
• The court upheld that Nescafé Premix falls under Entry C-II-3, attracting a lower sales tax rate.
• The decision was based on common commercial understanding and market perception, not just the percentage of coffee content.
• The court’s ruling favored Nestle India Ltd and rejected the Sales Tax Department’s argument for a higher tax rate.

Source: taxscan.in

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---