1985 (12) TMI 366 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of the term "medicine and pharmaceutical preparation" under Notification No. ST-1I-5785/X-10 (1) U. P. S. T. Act-i5/Order-81.

Summary:
The Commissioner of Sales Tax, U. P., filed a revision under Section 11 (1) of the U. P. Sales Tax Act against the Sales Tribunal's judgment in favor of the respondent-assessee, who sells 'Odomos' mosquitoes repellent cream. The Commissioner opined that Odomos is an unclassified item taxable at 8%, while the Tribunal held that it falls under the category of "medicine and pharmaceutical preparation" as per a specific notification. The Tribunal considered various meanings of the term "medicine" and noted that Odomos is used as a preventive measure against mosquito bites, akin to a medicine. The Tribunal also highlighted that Odomos is regulated under the Drug and Cosmetics Act, supporting its classification as a medicine.

The department argued that Odomos is not exclusively sold in chemist shops, but also in general merchandise stores. However, the Court emphasized that the common usage and purpose of a product should determine its classification. Referring to established legal principles, the Court upheld the Tribunal's decision, stating that Odomos, being commonly understood and used as a medicine, falls under the notification's purview. Therefore, the revision was dismissed, and no costs were awarded.

Separate Judgment:
No separate judgment was delivered by the judges in this case.