YAKA INTERNATIONAL Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The short question which needs to be considered in this writ petition is as to whether the petitioner, who is desirous of setting up an industry to manufacture toiletries, such as after shave lotion, eudecolon etc., having denatured spirit as one of its inputs (raw material), is required to obtain a licence as per provisions of Section 6 of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (in short the Central Act') and the rules framed thereunder namely, the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956 (in short 'the Central Rules').

(2.) Section 2 of the Central Act is the definition clause. Clause (a) of this section defines the "alcohol" to mean ethyl alcohol of any strength and purity having chemical composition C2H5OH. Clause (c) thereof defines "dutiable goods" to mean the medicinal and toilet preparations specified in the schedule as being subject to the duties of excise levied under the said Act. Clause (k) of the section defines "toilet preparations" to mean any preparation which is intended for use in the toilet of the human body or in perfuming apparel of any description, or any substance intended to cleanse, improve or alter the complexion, skin, hair or teeth, and includes deodorants and perfumes. Toilet preparations containing alcohol or narcotic drug or narcotic" has been included in the Schedule of Act as Item No. 4.

(3.) Therefore on plain reading of the aforesaid definitions readwith Item No. 4 of the Schedule, it has to be held that the toilet preparation containing alcohol squarely falls in the ambit of "dutiable goods" for the purposes of the Central Act.