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

The Supreme Court of India ruled that Hamdard (Wakf) Laboratories' Rooh Afza qualifies as a fruit drink or processed fruit product under the Uttar Pradesh Value Added Tax Act, 2008. This classification entitles the product to a concessional VAT rate of 4 percent, overturning earlier judgments by the Allahabad High Court and tax authorities that had imposed a higher 12.5 percent tax. The court noted Rooh Afza's fruit-based ingredients and consistent classification across several states as key factors in its decision.