STATE OF ANDHRA PRADESH Vs. RAJA MEDICAL STORES

JUDGEMENT

(1.) The only question in this tax revision case is whether distilled water sold in vials by the respondent, who is a dealer in medicines and drugs, falls within entry 37 of the First Schedule to the Andhra Pradesh General Sales Tax Act, or should it be treated as general goods. Entry 37 reads as follows :

(2.) The Tribunal has held in favour of the assessee, that is to say, that distilled water falls within entry 37. That finding is challenged in this tax revision case.

(3.) For answering the above question, it is necessary to find out what is "distilled water". It is chemically pure water, made free of all types of infection-producing pathogens and all other impurities, so that it can be mixed with injectable drugs and medicines. It is undoubtedly an integral component of the injected medicine. In other words, the injected medicine consists not only the substance or powder, as the case may be, but also the distilled water which is mixed with the powder or the substance before it is injected. Looked at from this point of view and also from the common sense or commercial point of view it would be reasonable to hold that distilled water sold in vials for the purpose of being mixed with medicines and drugs before injecting, must be treated as falling under item 37. This is also the view taken by the Calcutta High Court in Ram Chandra Sundarka v. State of West Bengal 1971 Crl LJ 1369.