Supreme Court Classifies Rooh Afza as Fruit Drink, Grants Lower VAT Rate

The Supreme Court ruled that Hamdard Laboratories' Rooh Afza qualifies as a 'fruit drink' under the Uttar Pradesh Value Added Tax Act, overturning earlier judgments that classified it as a non-fruit drink subject to higher VAT. The court noted the product contains 10% fruit juice and is intended for dilution, aligning with classifications in several states. This decision grants Rooh Afza a concessional 4% VAT rate for assessment years 2007-08 to 2011-12, providing tax relief to the manufacturer.