9911796707
TMI Blog2015 (10) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... osmetic at the time relevant to the assessment year under the Rajasthan Sales Tax Act, 1994 and therefore exigible to tax at six per cent. ad valorem relevant to the medicines as against the higher rate of 12 per cent. ad valorem for cosmetics as claimed by the Department. The facts of the case are that the assessee in the course of sale of Keo Karpin Baby Oil in the State of Rajasthan at the relevant time (assessment year 1991-92) paid at six per cent. tax classifying it to be a medicine/drug. The Department contrarily claimed that Keo Karpin Baby Oil was not a medicine/drug exigible to sales tax at six per cent., but instead a cosmetic on which tax was leviable at 12 per cent. ad valorem. And hence aside of differential of six per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. ad valorem as a cosmetic and not at six per cent. ad valorem as applicable to medicine/drug. It has been submitted that there was no material before the Tax Board to upset the findings of fact that had been arrived at by the assessing authority and confirmed by the appellate authority with regard to the classification of Keo Karpin Baby Oil as a cosmetic. Heard. Perused the judgment dated February 20, 2001, passed by the Tax Board as also the orders passed by the assessing authority and the appellate authority. Considered. The State Government in the exercise of its powers under section 5 of the Act of 1954 vide notification serial No. 798 : F.4(37)FD/Gr.IV/90-15 dated June 27, 1990 (relevant to the assessment year 1991-92 in issue) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008] 8 SCC 369 has held that the meaning of a drug under the Drugs and Cosmetics Act, 1940 (hereinafter "the Act of 1940") is very wide. It includes therapeutic and prophylactic products even with not very significant quantities of medicine which however define the character of the product. The honourable Supreme Court in the case of Ranbaxy Laboratories Ltd. v. Municipal Council, Ropar [2006] 8 SCC 637 has reiterated that the burden to prove that a certain items is exigible to tax and falls under a given taxable entry is always on the revenue. In the aforesaid context, a perusal of the order dated January 6, 1995, passed by the assessing authority as also the confirming appellate order dated October 30, 1996 on the question of classifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iciency in them, entitling it to be classified as a medicine/drug. In coming to its conclusion, the honourable Division Bench applied the tests laid down by the honourable apex court for determining whether a product sold was a drug/medicine or a cosmetic as enunciated in the case of B. P. L. Pharmaceuticals Ltd. v. Collector of Central Excise [1997] 104 STC 164 (SC); [1995] 77 ELT 485 (SC) and also followed in the cases of Commissioner of Central Excise, Calcutta- IV v. Pandit D. P. Sharma [2003] 5 SCC 288-Banphool Oil, Commissioner of Central Excise, Allahabad v. Himtaj Ayurvedic Udyog Kendra [2003] 5 SCC 290-Himtaj Oil and Meghdoot Gramodyog Sewa Sansthan, U. P. v. Commissioner of Central Excise, Lucknow [2005] 4 SCC 15-Bhringraj Oil. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
