COMMISSIONER OF COMMERCIAL TAX Vs. DABAR INDIA LTD

JUDGEMENT

(1.) BOTH these M. C. Cs. being identical in nature are disposed of by this common order.

(2.) ASSESSEE is a manufacturer and dealer in ayurvedic medicines. He also manufactures and sells "gulab jal". He was charged 12 per cent sales tax on this under residuary entry but he claimed that it was ayurvedic medicine and chargeable at 3 per cent under entry 16 of Part IV (Schedule II) of the Madhya Pradesh General Sales Tax Act, 1958. He has supported it by a certificate from some of the doctors, some Sanskrit texts and on the plea that he was manufacturing it under the licence issued under the Drugs Act. His claim was, however, rejected by assessing authority and Appellate Deputy Commissioner. Board of Revenue, however, relying upon judgment of this Court took a view that "gulab jal" was ayurvedic medicine and taxable at 3 per cent and not 12 per cent. Revenue sought reference against this and that is how we are seized of the matter and require to answer the following question :

(3.) THE point in issue is covered by our judgment also in Vicco Vajradanti's case (1998) 20 TLD 194 Commissioner of Commercial Tax v. Dawar Brothers [1998] 111 STC 319 (MP) wherein we have laid down certain parameters to adjudge whether product like "gulab jal" qualified to be ayurvedic medicine. One of the tests was whether the product was manufactured under a licence issued under the Drugs Act. It was also observed in that judgment that once a product figured in its schedule as a drug/medicine it could not be treated otherwise by Revenue unless deleted from the Statute.