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TMI Blog1996 (4) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent and not at the rate of 6 per cent (for medicine and drugs). On the establishment of this Tribunal, the cases stood transferred to it under section 15, Rajasthan Taxation Tribunal Act, 1995. 2.. The facts of the cases may be summarised thus. The petitioner is a distributor of M/s. Panama Chemical Works, Niranjanpur, Indore, manufacturer of "Swad" tablets. For the assessment year 1989-90, the petitioner deposited tax on the sale of "Swad" tablets at the rate of 6 per cent, treating it as an ayurvedic medicine. By his order dated November 4, 1992, the assessing authority disallowed the petitioner's claim of "Swad" as an ayurvedic medicine and held that it was a confectionery article, accordingly levied tax at the residuary rate of 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mical Works, Indore. It was challenged in the Writ Petition No. 2197 of 1990 Panama Chemical Works, Indore v. Union of India, before the Madhya Pradesh High Court, Indore and by its order dated July 2, 1992, (1992) 62 ELT 241, it has been held that "Swad" is an ayurvedic preparation and has rightly been classified under item No. 3003.30 of the Central Excise Tariff Act. In the alternative, he contended that "Swad" tablets contain 97 per cent sucrose and 3 per cent ayurvedic ingredients and as such it is exempt from payment of tax being sugar. He placed reliance on C.T.O. v. Heeralal Murlidhar 1993 Tax World 32. 4.. In reply, it has been contended by the learned counsel for the Revenue that the Commercial Taxes Officer, Deputy Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1985, deals with sugar and sugar confectionery. Its note No. 2 runs as under: "For the purpose of sub-heading numbers 1701.10, 1701.20, 1701.31, 1801.39 and 1702.11 sugar means any form of sugar in which the sucrose content if expressed as a percentage of the material dried to constant weight at 105 C would be more than 90." It cannot, therefore, be said that "Swad" is sugar and it is entitled for exemption from payment of tax. In C.T.O. v. Heeralal Murlidhar 1993 Tax World 32, sucrose contents were more than 90 per cent, in sugar candy and as such it was held to be exempted from tax. 6.. The next question for consideration is whether "Swad" is a medicine. As already observed above, the disputed assessment years are 1986-87 and 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... special type of goods is subject-matter of a fiscal entry, then that entry must be understood in the context of that particular trade, bearing in mind that particular word........ It is a well-settled principle of construction, as mentioned before, that where the word has a scientific or technical meaning and also an ordinary meaning according to common parlance, it is in the latter sense that in a taxing statute the word must be held to have been used, unless contrary intention is clearly expressed by the Legislature.........." In common parlance, medicine means a substance or a preparation used in the prevention or treatment of disease and must have curative power so as to make it effective for treatment of ailment. 7.. Section 3(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r own formula and got patented in the name of 'Swad' from the Drugs Controller of Madhya Pradesh under the Drugs and Cosmetics Act, 1940." At page 6, it is stated as under: "The ingredients which go into making of this medicine (Swad) have been taken from ayurvedic books with certain modification." At page 3, para 3 of the judgment given in Misc. Petition No. 1297 of 1990, Panama Chemical Works v. Union of India on July 21 1992 (1992) 62 ELT 241, it is stated as under: "These tablets have been prepared in accordance with the ingredients mentioned in the authoritative text book of ayurved called Bhav Prakash. There are two commentaries on this book by well-known ayurvedic experts which have also been stated in the petition. The petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provided as an ingredient in the preparation of the ayurvedic medicines. By adding the liquid glucose the product falls out of the ambit of the definition of ayurvedic medicine stipulated in section 3(h)(i) of the Cosmetics Act, 1940. The proportion of the ayurvedic ingredients in the medicine is only 3 per cent, whereas the contents of sugar are 97 per cent. As such the curative effect, if any, of the medicine is lost and actually branding it as an ayurvedic medicine is for the sole purpose of evading excise duty." In para No. 29, it is observed: "There is not an iota of evidence to show that this product is sold as a confectionery and is commonly used as a confectionery by the consumer." 9.. In these cases, the petitioner has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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