Explained: The curious case of Nimbooz in the Supreme Court

Is Nimbooz, the drink, a lemonade or a juice-based drink? Believe it or not, the Supreme Court recently announced that it would be hearing this matter and deciding its category.

For those left scratching their heads as to why the apex court would be hearing such a case, it’s a matter of determining the excise duty on it.

The Supreme Court is expected to hear the petition in April.

As they top court prepares to hear the matter, we take a look at what the case is all about and why the outcome will matter.

Case explained

A two-judge bench of justices MR Shah and BV Nagarathna agreed to hear the petition filed by a company named Aradhana Foods.

The company, Aradhana Foods, wants the drink to be categorised as lemonade instead of its current status of 'fruit pulp or fruit juice-based drink'.

The petition in the Supreme Court comes on the back of the drink being categorised as a fruit juice-based drink as per an order passed by the Allahabad bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in November last year. Prior to this, it was classified as lemonade.

Justices Dilip Gupta and P Venkata Subba Rao had categorised Nimbooz as a fruit juice drink following which it came under tariff item 2202 90 20 of the Central Excise Tariff.

In its judgment, the court had said, "The product "Minute Maid Nimbu Fresh (hereinafter referred to as MMNF) manufactured by Brindavan Beverages Private Limited, and 7UP "Nimbooz Masala Soda" or 7UP "Nimbooz" manufactured by PepsiCo India Holdings Private Limited are classifiable under Tariff Item 2202 90 20 of the Central Excise Tariff Schedule under the category of "fruit pulp or fruit juice based drinks."

Aradhana Foods has countered this order, and approached the Supreme Court, saying that the drink, Nimbooz, merited classification as lemonade under CETH 2022 10 20 of the First Schedule to the Central Excise Tariff Act 1985.

Juice or lemonade?

Nimbooz was launched in 2013 by PepsiCo under its 7Up brand.

It has been described as a drink made of real lemon juice, no fizz, and no artificial flavours. This led to a debate about its categorisation — whether it should be considered a lemonade or fruit juice/fruit pulp-based juice.

The classification history of fruit juice-based drinks is a chequered one.

According to the current tax structure, aerated drinks attract GST at 28 per cent plus a compensation cess of 12 per cent whereas non-aerated drinks (including fruit juice-based drinks) largely attract a GST of 12 per cent or some attract a GST at 18 per cent.

Reactions

The apex court’s decision to hear the case quickly became a trending topic on Twitter, with some mocking the judiciary.

One netizen wrote that the judiciary had been turned into a joke.

Another wrote that ‘no satire could beat reality.’

A third questioned if the court was making efficient use of its time.

As Twitter erupts over the matter, we shall take a break and gulp some of the drink down!

With inputs from agencies

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