FMCG major Nestle India Ltd has moved the Gujarat high court questioning the decision of the state commercial tax department of levying value added tax (VAT) on sale of its noodles 'Maggi' in the state. The company has contended that levying VAT on its noodles is a deviation from an earlier Sales Tax Tribunal's decision.

Nestle has challenged the order of the deputy commissioner of commercial tax issued on October 12, seeking recovery of VAT for the assessment year 2008-2009 for the sale of noodles in Gujarat. In its petition, the company has contended that the noodles falls under the category of 'sev', and is made of wheat flour and exempted from VAT as per a judgment delivered by the Gujarat Sales Tax Tribunal on September 9, 1986.

The company also submitted that noodles, which falls under classification of 'sev' were exempted from VAT during previous assessment years of 2006-07 and 2008-07 by the same authority which is now seeking VAT on the food product at the rate of 12.5 per cent under the residuary entry of the Gujarat Value Added Tax Act. (Times of India)