COMMISSIONER OF COMMERCIAL TAX Vs. DAWAR BROTHERS

JUDGEMENT

(1.) THIS order shall also govern the disposal of I. T. R. Nos. 7 of 1998, 5 of 1998, 8 of 1998 and 9 of 1998. Is Vicco Vajradanti tooth paste, powder and turmeric cream a medicine ? The issue arises in this application filed by the Revenue under Section 44 (2) of the Madhya Pradesh General Sales Tax Act, 1958, requiring reference by the Board on the following question of law :

(2.) THE assessee deals in hosiery articles, machinery goods and toilet and cosmetic articles. He imported Vicco Vajradanti (paste and powder) and Vicco turmeric cream and was assessed from January 1, 1983 to December 31, 1983 at the rate of 10 per cent on tooth paste and powder vide entry No. 2 of Part III of Schedule II to the Act and at 13. 5 per cent on turmeric cream vide entry No. 21 of the Part II of Schedule II of the M. P. Sales Tax Act. He took appeal before the Appellate Deputy Commissioner, who upheld the assessment by order dated June 20, 1991. He then filed second appeal before the Board of Revenue which was allowed holding the product in question as "drugs and medicines" covered by entry No. 16 of Part IV of Schedule II of the Act.

(3.) THE Revenue felt aggrieved and made reference application under Section 44 (1) of the Sales Tax Act, which was rejected by the Board vide order dated August 4, 1997. While doing so, the Board drew support from its own Division Bench order and judgments of the Karnataka High Court in United Trading Agency v. Additional Commissioner of Commercial Taxes [1997] 104 STC 182, and of Bombay High Court in an allied matter against which special leave petitions were dismissed by the Supreme Court in S. L. P. Nos. 126805 dated November 28, 1996 and 2123 of 1993 and concluded that the issue was no more res integra. It accordingly declared the products falling within the meaning of the definition of "drugs and medicines" under the Act and held that no question of law arose in the case.