Nestle India, FMCG major has challenged state government's decision to levy value added tax (VAT) on sale of its noodles in Gujarat, in the Gujarat High Court. The company sold these noodles under brand name 'Maggi'. It has mentioned in its petition that the noodles comes under the category of sev made out of wheat flour which is exempted from VAT as per the order dated September 09, 1986, judgment of the Gujarat Sales Tax Tribunal.
A division bench of Justice issued notice to the state government and Deputy Commissioner Commercial Tax (VAT) and asked them to file reply on the company’s petition by December 20. The court directed the state government not to take any coercive action against the company during the pendency of the petition.
