HEINZ INDIA LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) Since the facts and the legal issues are common in these two revision petitions, they are clubbed, heard and disposed of by this common order.

(2.) The petitioner is a dealer registered both under Kerala General Sales Tax Act and Central Sales Tax Act. The petitioner is engaged in the manufacture of 'nycil Prickly Heat Powder'. According to the petitioner, the said product is manufactured under a Drug Licence issued under the provisions of the Drugs and Cosmetics Act. The product is also covered by the Drugs (Price Control) Order, 1970 and price of the product is regulated, approved and is capable of being fixed by the government and the product is stored under a Drug licence.

(3.) The petitioner further states, that, the key factor which distinguishes the product, "nycil Prickly Heat Powder" from Talcum Powder is the constituent Chlorphenesin I. P. , base zinc oxide I. P. , Starch I. P. , and Talcum Purified I. P. The content of Chlorphenesin is maintained at 1%, since this was established as the optimum concentration effective against fungal infection. The other ingredients like zinc oxide, starch and talc are used as a base for dispersing Medicament Chlorphenesin. Chlorphenesin is the local anti fungal agent and used in tropical preparations for the treatment of beautification and smoothening the human skin. In fact, the presence of starch in the preparation makes the powder coarse and rough in texture for the purpose of effective adherence to the skin affected by indications like prickly heat, sores, dhobi itch, athlete foot etc.