1990 (10) TMI 339

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..... under section 23(1) of the Karnataka Sales Tax Act, 1976 ("the Act" for short) by the same assessee, the following question of law arises for consideration: "Whether herbs, roots and barks of trees could be regarded as medicinal and pharmaceutical preparations falling under entry 41 of the Second Schedule to the Act?" 2.. Brief facts of the case are these: The assessee is a dealer in dried herbs .....

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..... as to why the turnover relating to the aforesaid items should not be taxed at the higher rate prescribed in respect of entry 41 of the Second Schedule. The said entry prescribed 8 per cent tax for medicinal and pharmaceutical preparations. In his reply, the assessee contended that the goods which the petitioner had sold were not medicinal or pharmaceutical preparations and therefore entry 41 of t .....

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..... goods can be brought under entry 41 of the Second Schedule, if only they can be regarded as medicinal and/or pharmaceutical preparations. Elaborating the point, Sri Indra Kumar, learned counsel for the petitioner, submitted that it is only when a medicinal preparation is brought into existence by any particular process by using any raw materials which could be herbs, roots and barks, such goods m .....

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..... or as special goods falling under the heading "Medicine". The Allahabad High Court held that as undisputedly "jari booti" was used as a medicine it fell under special entry "medicine" though the word medicine has not been statutorily defined. In our opinion, the aforesaid decision of the Allahabad High Court is of no assistance to the respondent in these cases. If entry 41 read only as "medicine" .....

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..... not medicinal preparations. Therefore, we answer the question arising for our consideration thus: "Herbs, roots and barks of trees cannot be regarded as medicinal and pharmaceutical preparations falling under entry 41 of the Second Schedule to the Karnataka Sales Tax Act, 1957. " 6.. In the light of the above answer, we make the following order: (i) Revision petitions are allowed. (ii) The ord .....

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