The Madras High Court recently held that bakery products do not fall under the exemption notification for sales tax.

Before the High Court, a petition was filed by a restaurant at No.32, Nungambakkam High Road, Chennai, which is involved in the activity of preparation of food and drinks. Admittedly, the food and drinks were not sold under any brand name.

It was contended that pursuant to the notification in G.O.P.No.570 dated 10th June 1987, selling of bakery products in a snack bar is exempted and therefore, the petitioner is entitled to the benefit of exemption under the said notification.

The Taxation Special Tribunal made a finding that bakery products sold by the assessee would fall under the heading “food and drinks" mentioned in the said Government Order and those items are being

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