MERCURY PHARMACEUTICALS INDUSTRIES Vs. STATE OF GUJARAT

JUDGEMENT

(1.) IN this reference made at the instance of the assessee under section 69 of the Gujarat Sales Tax, 1969 (hereinafter referred to as "the Act"), the Gujarat Sales Tax Tribunal (hereinafter called "the Tribunal") has referred the following question for the opinion of this Court : " Whether, on the facts and in the circumstances of the case, the levy of purchase tax under section 16 of the Gujarat Sales Tax Act, 1969, on the purchases of glass ampules made against declaration in form 19 was justified on the ground that such ampules were neither raw materials, processing nor consumable stores used in the manufacture of goods for sale ?"

(2.) THE assessee herein is a manufacture of pharmaceuticals. Amongst the pharmaceutical products manufactured by the assessee are included various kinds of injections. THE injectible liquid medicine, after it is prepared, is required to be filled in glass ampules made of special glass. THE assessee does not manufacture such ampules but purchases them. After those ampules are properly washed and subjected to sterilisation, the injectible liquid medicine is poured into them without touch of human hand. THE tops of the ampules are thereafter automatically sealed. This entire integrated process of manufacture of injectible liquid medicine and filling and sealing it in glass ampules takes place in the plant of the assessee under expert supervision because extreme care has to be taken to ensure against any contamination.

(3.) AGAINST the aforesaid order of the Assistant Commissioner of Sales Tax the assessee preferred a revision application before the Tribunal. The Tribunal, upon an appraisal of the process of manufacture and after taking into consideration certain decided cases, concurred in the decision of the Assistant Commissioner of Sales Tax and dismissed the revision application. At the instance of the assessee, however, the Tribunal has stated a case in respect of the question set out above.