9911796707
TMI Blog2001 (1) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... be engaged in the business of manufacture of various drugs which according to the petitioner are basic drugs used in manufacture of other medicines. It has its manufacturing units at Mandideep in district Raisen. The petitioner is a registered dealer both under the State Sales Tax Act as also under the Central Sales Tax Act, 1956. 3. The State Government in exercise of its powers conferred under section 17 of the M.P. Commercial Tax Act, 1994 (for short called the Act ) has issued a Notification bearing No. A-3-32-97-STV-(22) dated May 9, 1997 exempting certain specified class of goods from payment of tax under the Act for the period (April 1, 1997 to March 31, 2000) to the extent specified therein. The notification reads as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Medical equipments Partly so as to reduce the rate of tax under section 9 to 2 per cent. 4. So far as the present petition is concerned, it relates to class of goods specified in serial number 3 in the aforementioned notification. It is, therefore, separately reproduced as under: SCHEDULE S. No. Class of goods Extent of exemption 3. Basic drugs, when used as raw material for manufacture of medicines. Partly so as to reduce the rate of tax under section 9 to 2 per cent. 5. According to the petitioner, they were entitled to payment of concessional rate of tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption notification? 9. Shri Mathur, learned Senior Counsel appearing for the petitioner, argued that on proper interpretation of the relevant entry 3, the words when used as raw material for manufacture of medicines after the words basic drugs mentioned in the entry are superfluous or in any event redundant. According to learned counsel, it is impracticable to ascertain whether a particular drug is being actually used or would be used for manufacturing some other drug by the purchaser of those drugs. Learned counsel urged that the exemption benefit is essentially to goods which are capable of being used for manufacturing other drugs and not on its actual use ultimately. In other words, the submission is that use of goods (drugs) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Legislature has its own importance and role to play in the construction of the sentence equally applies in this case too. When the Legislature has used the words when used as raw material for manufacture of medicines after the words basic drugs , then it has to be given its logical and natural meaning. These words are in the form of qualifying words to the earlier words basic drugs . In other words, the benefit of notification is available to a dealer only when the basic drugs to which benefit is given are used as a raw material for manufacture of other medicines. If those drugs are not used in manufacture of medicines then in that event the benefit of notification cannot be given. 13.. In effect, therefore, the grant of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e requirement of notification and hence is eligible to be taxed at a lesser rate of tax, i.e., 2 per cent as against 9 per cent. It is then the authorities to decide on the basis of the material brought on record by the dealer whether to grant the benefit of lesser rate of tax on that particular drug on which the exemption is sought or not. In other words, it is then for the authorities to decide whether a case for claiming benefit in payment of lesser rate of tax on that particular drug is made out or not. 16. Learned counsel for the petitioner has cited several authorities in support of his submissions. These authorities are [1968] 22 STC 152 (MP) (Commissioner of Sales Tax, Madhya Pradesh v. Kapoor Dori Niwar and Co.), 26 Cur. T.J. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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