RASHTRA DEEP LABORATORY Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) M/s. Rashtra Deep Laboratory, Firozabad, is the applicant in this Court in the present revision under Section 11(1) of the U. P. Sales Tax Act. It has assailed the view taken by the Sales Tax Tribunal, Kanpur, that the turnover of "water for injection" manufactured by it during the year 1974-75 was liable to tax at the rate of 7 per cent as an unclassified item and not at the lower rate of 3 per cent as being a medicine or pharmaceutical preparation as provided in Notification No. ST-II-332/X-1012-1971 dated 15th November, 1971, issued in exercise of the powers under Section 3-A of the Act. The Assistant Commissioner (Judicial) Sales Tax had held it taxable at the lower rate and had, differing from the view taken by the assessing authority that it was taxable as an unclassified item, granted relief to the dealer.

(2.) It has been noticed by the Tribunal in its order that the applicant manufactures and deals in medicines and water for injection. It has held that water for injection admittedly being sterilised distilled water free from pyrogens even after redistillation, remained distilled water. By itself, water for injection had no pharmaceutical or medicinal properties and could not be treated as a drug or medicine or pharmaceutical preparation.

(3.) In Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan AIR 1980 SC 1552, it was ruled that: