1998 (2) TMI 544

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..... g that Vicco Vajradanti (paste and powder) and Vicco Turmeric cream sold by the appellant was ayurvedic medicines covered by the expression drugs and medicines in entry No. 16 of Part IV of Schedule II to the Act liable to tax at the total rate of 5 per cent and not at 10.7 per cent and 14.45 per cent respectively? 2.. The assessee deals in hosiery articles, machinery goods and toilet and cosmetic articles. He imported Vicco Vajradanti (paste and powder) and Vicco turmeric cream and was assessed from January 1, 1983 to December 31, 1983 at the rate of 10 per cent on tooth paste and powder vide entry No. 2 of Part III of Schedule II to the Act and at 13.5 per cent on turmeric cream vide entry No. 21 of the Part II of Schedule II of th .....

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..... s also submitted that even the assessee was selling these products as cosmetic items and not medicines. Lastly it is argued that mere obtaining of licence by the assessee under the Drugs and Cosmetics Act, could not clothe these products with medicinal properties and bring them under drugs and medicines and that the judgments of the Bombay and Karnataka High Courts [United Trading Agency v. Additional Commissioner of Commercial Taxes [1997] 104 STC 182 (Kar)] were referable to some other enactments and Acts and were not attracted to point in issue. 5.. It must be pointed out at the very outset that both Karnataka (United Trading Agency v. Additional Commissioner of Commercial Taxes [1997] 104 STC 182) and Bombay High Courts had reached .....

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..... the contrary to be adduced in exercise within the boundaries of the Drugs and Cosmetics Act. A product validly declared a drug or medicine under the law cannot be de-recognised or de-classified on the ipse dixit of any external agency like a Revenue which cannot claim any expertise in the determination of the medicinal properties of such product. 7.. Likewise a product may be commonly named or known as whatsoever or may be sold in whatever form, that by itself does not impinge on its true status and would not dilute its true nature and character as determined validly by a competent authority in exercise of a statutory power. Therefore, vicco vajradanti paste and powder or cream may be called so in the trade and yet these could possess .....

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