1999 (10) TMI 706 - HC - VAT and Sales Tax

Summary

The High Court of Madhya Pradesh ruled that "gulab jal" manufactured by an Ayurvedic medicine company should be taxed at 3 per cent under entry 16, not at 12 per cent under the residuary entry. The court's decision was based on the product being considered an Ayurvedic medicine and manufactured under a license issued under the Drugs Act. The judgment was in line with the parameters set in a previous case, Vicco Vajradanti, and the Revenue cannot derecognize a product listed as a drug/medicine in the statute. The reference was answered in the affirmative. Reported as Commissioner of Commercial Tax v. Dawar Brothers [1998] 111 STC 319 (MP).