STATE OF GUJARAT Vs. SINTEX INTERNATIONAL LTD.

JUDGEMENT

(1.) These Tax Appeals have been clubbed together because of commonality of the issues involved. The question of law framed by the High Court at the time of admission of the appeals was common and reads as under :

(2.) The three Tax Appeals arise out of three different judgments of the Value Added Tax Tribunal. The contents of the judgments are substantially similar. We may record facts from Tax Appeal No.357 of 2013. The appeal is filed by the State challenging the judgment of the Value Added Tax Tribunal dated 23.03.201 The respondent assessee is engaged in manufacturing and selling various Ayurvedic products including Bhrungraj hair oil, Brahmi hair oil, Bhallatak dantmanjan and Ayurvedic dantmanjan. Contending that these products are pharmaceutical drugs and therefore, would fall under entry 28A of the Schedule II of the Gujarat Value Added Tax Act, 2003 ('the VAT Act' for short), the assessee applied to the competent authority for determination of this issue in terms of section 80 of the VAT Act. Before the authority, the assessee made detailed submissions with respect to all four products in question. It was pointed out that the hair oils are made from Ayurvedic products applying Ayurvedic methodology. These hair oils do not contain any fragrance or perfume and in fact, contain unpleasant odor. They are therefore not used as ordinary or cosmetic hair oils. Each oil has specific medicinal purpose such as to prevent premature hair fall, to remove dandruff, to prevent headache etc.

(3.) Regarding the toothpaste, it was contended that they are used under Ayurvedic medical advice in case of person suffering from different oral diseases. They are also manufactured by using scientific methods and Ayurvedic products. It was pointed out that all the four items are registered under the Drugs and Cosmetics Act and the assessee has the license to produce and sell them under the said Act. In short, the contention of the assessee before the said authority was that the products in question are pharmaceutical drugs and not cosmetics.