STATE OF ANDHRA PRADESH Vs. RAMAKRISHNA PHARMACEUTICALS

JUDGEMENT

(1.) This Tax Revision Case is filed questioning the correctness of the judgment Dt. 30.06.2000 passed by the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad (for short 'STAT') in T.A. No. 165 of 1996 whereby Arnica Hair Oil has been held to be falling under entry 37 of Schedule-I to the Andhra Pradesh General Sales Tax Act, 1957 (for short 'APGST Act') and cannot be treated as a cosmetic falling under entry 36 of the same schedule. The short point that arises for consideration is whether Arnica Hair Oil can be treated as a medicine and will fall under entry 37 of the Schedule-I of the APGST Act as a medicine or as cosmetic falling under entry 36 of the APGST Act.

(2.) A perusal of the impugned judgment shows that the assessee, respondent herein, adduced evidence of the Director of M/s. Rama Krishna Pharmaceuticals and filed a copy of form 26(c) showing that they have obtained licence No. 10/Drugs(H)/78, and it has been renewed for the period 01.01.1999 to 31.12.2000. A perusal of form 26(c) also shows that respondent had obtained license and that the license was renewed year after year and the respondent had also produced a certificate Dt. 01.02.2000 issued by the Additional Director (Homeo), Indian Medicines and Homeopathy who stated that M/s. Ramakrishna Pharmaceuticals was manufacturing Arnica Hair Tonic for the year 1989-90 and 1990-91 under a valid drug licence.

(3.) The Tribunal placing reliance on decisions in Bombay Conductors and Electricals Ltd. and another Vs. K. Chandramouli, Under Secretary to the Govt. of India and others, and Indo National Ltd. Vs. State of Andhra Pradesh, held that Arnica Hair Oil is a drug which would fall under entry 37 of APGST Act.