Archive · 29 Sep 2025
Madras HC: Bakery Items in Snack Bars Not Sales Tax Exempt
Imagine a snack bar that sells bakery items like bread and pastries.
This story is about whether the snack bar has to pay sales tax on these items.
The Madras High Court looked at an old rule about sales tax exemptions.
This rule said some food items, like tea and coffee, don't have to pay the tax.
The snack bar argued their bakery items should be exempt too, but the court disagreed.
The court said bakery items aren't on the list of things that don't need to pay tax.
Therefore, the snack bar has to pay sales tax on its bakery products.
The court agreed with the earlier decisions from the authorities.
The Madras High Court ruled that bakery products sold in snack bars are not exempt from sales tax.
The case involved a restaurant in Chennai preparing food and drinks without a brand name.
The restaurant claimed exemption under notification G.O.P.No.570, June 10, 1987.
The court referenced Entry 48 of III Schedule, which did not include bakery products.
The court upheld the appellate Tribunal's decision to reject the exemption claim.
- Who
- Madras High Court
- What
- Ruled that bakery products sold in snack bars are not exempt from sales tax.
- When
- September 29, 2025
- Where
- Madras High Court, Chennai
- Why
- To determine if bakery products sold in snack bars qualify for sales tax exemption.
- Court
- Madras High Court
- Ruling
- Bakery items not sales tax exempt
- Relevant Notification
- G.O.P.No.570, June 10, 1987
- Petitioner
- Restaurant in Chennai
- Focus
- Sales tax exemption for bakery products