PANAMA CHEMICAL WORKS Vs. COMMISSIONER SALES TAX

JUDGEMENT

(1.) THIS order shall also govern disposal of M. P. No. 1539 of 1991 (Richardson Hindustan Limited v. Assistant Sales Tax Commissioner), as common questions of law and facts are involved in these petitions. Both the petitions were, accordingly, heard together and are being disposed of by this common order.

(2.) HOWEVER, for the sake of convenience, the facts as appearing in the said petition, are being taken into consideration.

(3.) PETITIONER No. 1 is a manufacturer of an ayurvedic product, called "swad" tablets, which, according to it, are being used for therapeutic prophylactic purposes. These tablets are being manufactured in accordance with ingredients mentioned in the authoritative text books of ayurved. According to the petitioners, it contains ayurvedic substances together with glucose liquid and sugar. The said product "swad" is being prepared under a licence issued by the Drug Licensing Authority appointed under the Drugs and Cosmetics Act, 1940. Petitioner No. 1 is a duly registered dealer under the M. P. General Sales Tax Act. According to the petitioner, since the tablet known as "swad" is an ayurvedic medicine, therefore, it should fall under item No. 16 in the heading of Drugs and medicines of Part IV of the Second Schedule to the M. P. General Sales Tax Act, 1958 (hereinafter, for short, "the Act"), consequently, it would be liable to pay tax on the said medicine at 3 per cent.