The High Court affirmed that Arnica Hair Oil falls under entry 37 of the Andhra Pradesh General Sales Tax Act as a medicine due to the possession of a valid drug licence, differing from the view that it is a cosmetic.
The Tax Revision Case was dismissed, confirming that Arnica Hair Oil is a drug under entry 37.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
THE HON’BLE SRI JUSTICE ASHUTOSH MOHUNTA AND
THE HON’BLE SRI JUSTICE M. SATYANARAYANA MURTHY
TAX REVISION CASE No.165 of 2001
ORDER: (Per the Hon’ble Sri Justice Ashutosh Mohunta)
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.143 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.
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.01.07.2000 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.
The Tribunal placing reliance on decisions in State of Andhra
Pradesh vs. Karnatakam Govindayya Shetty and sons[1] and Indo National Limited vs. State of Andhra Pradesh[2] held that
Arnica Hair Oil is a drug which would fall under entry 37 of APGST Act.
We have heard the learned counsel for both parties at length.
We are of the considered opinion that had the respondents obtained a licence from Additional Director (Homeo), Indian Medicines and Homeopathy, it is evident that the Arnica Hair Oil would be under the definition of Drug and would fall under entry 37 of APGST Act.
Apart from the above, the Hon’ble Supreme Court in Puma Ayurvedic Herbals (P) Ltd Vs. Commissioner Central Excise,
Nagpur[3] held that once a licence is taken for manufacturing of a particular drug, then it would fall under the category of drug and not under the category of cosmetic. In view of the said finding, we are of the considered opinion that Arnica Hair Tonic would fall under the category of Drug and would be governed by the entry 37 of the APGST Act and cannot be termed as cosmetic.
Accordingly, this Tax Revision Case is dismissed.
Consequently, miscellaneous petitions, pending if any, shall stand closed.
__________________________ ASHUTOSH MOHUNTA, J
M. SATYANARAYANA MURTHY, J
05th March, 2014.
gra
[1] (1984) 55 STC 162
[2] (1987) 64 STC 382
[3] 145 Vol. STC Pg. 200
1 issue framed by the court
Whether Arnica Hair Oil qualifies as a medicine under entry 37 of Schedule-I to the Andhra Pradesh General Sales Tax Act, 1957 or as a cosmetic under entry 36 of the same schedule.
Colour shows how this judgement treated each authority
State of Andhra Pradesh vs. Karnatakam Govindayya Shetty and sonsRelied on¶9
(1984) 55 STC 162
Indo National Limited vs. State of Andhra PradeshRelied on¶9
(1987) 64 STC 382
Puma Ayurvedic Herbals (P) Ltd Vs. Commissioner Central ExciseRelied on¶14
145 Vol. STC Pg. 200
2 provisions across 1 enactments
State
Arnica Hair Oil
Ashutosh Mohunta
M. Satyanarayana Murthy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
