9911796707
TMI Blog2008 (7) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... iples as discussed above, we hold that other items, i.e., "Chlormint candy", "Chlormint ice", "Chlormint gum", "Gum draggy", "chewable gum draggy" and "Chatar patar", manufactured and sold by the assessee/respondent, cannot be said to be ayurvedic preparations as in respect of these items it is not shown that the same are according to formulations prescribed by authoritative books of ayurvedic medicines. Therefore, charging of 12.5 per cent trade tax in respect of these items cannot be said to be wrong. Accordingly, the question of law stands answered. And the four revisions are partly allowed. - - - - - Dated:- 28-7-2008 - PRAFULLA C. PANT AND DHARAM VEER , JJ. The judgment of the court was delivered by PRAFULLA C. PANT J. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les for the said four months were shown in the return of the items manufactured and produced by the assessee amounting to Rs. 97,34,613, Rs. 90,75,226, Rs. 89,47,046 and Rs. 78,28,978. Out of the said amount for the aforesaid four months, sales made through C.S.D. canteens were exempted from trade tax to the tune of Rs. 16,935, Rs. 9,072, Rs. 14,818 and Rs. 6,451. Apart from this, sales of items Chlormint Happydent and Chatar-patar , manufactured and sold by the assessee for the months of April 2006, May 2006, June 2006 and July 2006, were shown as Rs. 5,57,432, Rs. 5,17.019, Rs. 3,66,212 and Rs. 5,98,765 but only four per cent of tax was deposited on these sales and rest 8.5 per cent tax was deposited under protest . The case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, Shri Sudhanshu Dhulia, learned Senior Advocate representing the assessee, contended that the aforesaid preparations are ayurvedic medicines, as the products in question have medicinal use and utility. Before further discussion, we think it proper to mention the relevant provisions of law, applicable to the case. Section 4 of the Uttaranchal Value Added Tax Act, 2005, which pertains to rate of tax on the various kinds of items provides four slabs on rate of tax. Clause (b) of sub-section (2) of section 4 of the Uttaranchal VAT Act, 2005, provides that a dealer shall be liable to pay tax on his taxable turnover in respect of goods specified in Schedule II(B) at the rate of four per cent. It further provides that in respect of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y such ingredients mentioned in the formulae described in the authoritative books of Ayurveda, Siddha or Unani Tibb systems of medicine specified in the First Schedule, but does not include a medicine which is administered by parental route and also a formulation included in the authoritative books as specified in clause (a). (ii) in relation to any other systems of medicine. . . Authoritative books of ayurvedic and Siddha systems, are mentioned in Schedule A of the First Schedule of the Drugs and Cosmetic Act, 1940. Said list includes book titled Bhav Prakash . Shri Sudhanshu Dhulia, learned Counsel for the respondent referred before us, item Nos. 70 and 73 of Schedule I of book titled Bhavprakashnighantu , written by Ganga Saha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ush Haryana, has renewed the licence of the respondent-Perfetti Van Melle (India) Pvt. Ltd. for manufacturing ayurvedic/siddha drugs. Annexure-3 to the counter-affidavit shows that the licensing authority and Director of Ayurvedic, Haryana, has approved the preparations of Chlormint and Happydent , manufactured by the respondent/assessee under the Drugs and Cosmetics Act, 1940. It is not disputed that there are three kinds of medicines available in the market. Firstly, the medicines which can be purchased from only approved chemist/pharmacist that too only on the prescription of the registered medical practitioner. Secondly, the medicines, which can be purchased from approved chemist/pharmacist but not necessarily required to be presc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. v. Commissioner Central Excise, Nagpur [2006] 145 STC 200 (SC); [2006] 3 SCC 266 and Naturalle Heath Products (P.) Ltd. v. Collector of Central Excise, Hyderabad [2003] 1 RC 952; [2004] 9 SCC 136, and for the reasons discussed above, we hold that items Chlormint with herbasole and Happydent manufactured by the assessee under valid drug licence are ayurvedic medicines and trade tax payable on said items is four per cent as provided in clause (b) of sub-section (2) of section 4 of the Uttaranchal Value Added Tax Act, 2005. However, applying the same principles as discussed above, we hold that other items, i.e., Chlormint candy , Chlormint ice , Chlormint gum , Gum draggy , chewable gum draggy and Chatar patar , manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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