CADILA HEALTH CARE LTD Vs. ADDITIONAL COMMISSIONER

JUDGEMENT

(1.) The short question which arises for consideration in the instant writ petition is whether GRD powder and GRD Bix would fall within the expression "non-alcoholic drink and beverage" as employed by the legislature in Entry 20(ii) of Part - IV of the Schedule of the Madhya Pradesh Commercial Tax Act, 1994 (hereinafter referred to as 'the 1994 Act') and under Entry 14 of the Schedule- II of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as 'the Entry Tax Act'), so as to attract a higher rate of tax @ 10% and 2% respectively.

(2.) Facts, necessary for determination of the aforesaid question briefly stated are that the petitioner-company is a pharmaceutical company registered under the provisions of Companies Act, 1956. The petitioner-company deals in drugs and medicines and food supplements carrying brand names "GRD Powder and GRD Bix". The petitioner company is registered as a dealer under the provisions of the 1994 Act. The petitioner company filed the return and paid commercial tax @ 8% of total turn-over in respect of GRD Powder and GRD Bix, treating the same as goods falling under residuary clause in Part IV of Schedule II of the Act as goods not included in any other part of Schedule - II or Schedule - I of the 1994 Act.

(3.) During course of assessment proceedings for the period from 1.4.1997 to 31.3.1998, an explanation was sought from the petitioners as to why sales of GRD Powder and GRD Bix be not taxed @ 10% being covered under Entry 20(ii) of Part-IV of. Schedule-II of the 1994 Act. The petitioners filed their response to the explanation inter pointing out that products in question are not covered under the aforesaid entry. It was stated that products in question are food supplements which are sold by licensed chemists on prescription of doctors and are not available in grocery or general goods shop.