LEUKOPLAST INDIA LTD Vs. STATE OF GOA

JUDGEMENT

(1.) Petitioners are a company registered under the Companies Act, 1956. By this writ petition under Article 226 of the Constitution, they seek the quashing of the assessment orders made by the Sales Tax Officer on August 23, 1985, December 26, 1986 and December 24, 1986, the first relating to the period from 1-1-1981 to 31-12-1981, the second and the third to the period commencing on 1-1-1982 and ending on 31-12-1982 and on 24-12-1987 as regards the period starting on 1-1-1983 and ending on 31-12-1983 in respect of the Central and Local Sales tax payable by them, as well as a mandamus directing the respondents to withdraw the orders of assessment, and further, to refund to the petitioners the Local and Central Sales Tax paid by them in excess for the period commencing on 1-1-1981 and ending on 31-12-1987 together with interest at the rate of 21% from the date of collection till the date of refund.

(2.) Petitioners manufacture under a licence dated July 13, 1967, issued by the Drugs Controller under the Drugs and Cosmetics Act, 1940, which was amended on September 7, 1987, several products, inter alia, Zinc Oxide Adhesive Plaster B.P.C. (Leukoplast); Surgical Wound Dressing (Handyplast); Belladona Plaster B.P.C.; Capsicum Plaster B.P.C. and Cotton Crepe Bandages B.P.C. (Leukocrepe).

(3.) The aforesaid goods or products were liable to Local Sales Tax as well as Central Sales Tax and prior to 1st November, 1981, the rate of the Local Sales Tax leviable on then being of 6% and under Section 8(2-A) of the Central Sales Tax Act, the rate of the Central Sales Tax of 4% 28-10-1981, drugs and medicines were exempted from the levy of Local Sales Tax in excess of 3% and thus, according to the petitioners, as a result of this exemption, the Central Sales Tax leviable under Section 8(2-A) of the Central Sales Tax Act was also reduced to 3%.