The court ruling, upholding a decision by the first-tier tribunal, stated that the marshmallows are not to be considered confectionery.

The dispute arose when HMRC demanded £472,928 in sales tax from Innovative Bites, arguing that Mega Marshmallows fell under the category of confectionery and thus were subject to a 20% VAT. However, the first-tier tribunal disagreed, highlighting that the product is primarily intended for roasting rather than direct consumption.