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Issues: (i) Whether Nycil Medicated Powder is a toilet article within entry 21A of Schedule E to the Bombay Sales Tax Act, 1959. (ii) Whether Nycil Medicated Powder is a medicine within entry 13 of Schedule C to the Bombay Sales Tax Act, 1959.
Issue (i): Whether Nycil Medicated Powder is a toilet article within entry 21A of Schedule E to the Bombay Sales Tax Act, 1959.
Analysis: Entry 21A was construed narrowly in earlier decisions to cover only articles directly used in the process of grooming a person by beautifying his appearance, and not articles used merely for cleansing or for making up the toilet collectively. On the nature, composition, recommended use and advertising of the product, Nycil powder was primarily intended to prevent or relieve skin ailments and not to beautify appearance. The fact that it contained some ingredients having hygienic or antiseptic effect did not change its essential character.
Conclusion: Nycil Medicated Powder is not a toilet article within entry 21A of Schedule E.
Issue (ii): Whether Nycil Medicated Powder is a medicine within entry 13 of Schedule C to the Bombay Sales Tax Act, 1959.
Analysis: In common parlance, medicine means a remedial agent used internally or externally in treating disease or relieving sickness. Applying that test, the product's composition, preventive and curative properties, and its recommended use for prickly heat, ringworm, dhobie itch and similar skin ailments showed that it functioned as a medicament. The presence of starch and talc, and the fact that medicinal ingredients formed only part of the composition, did not take it outside the popular meaning of medicine.
Conclusion: Nycil Medicated Powder is medicine within entry 13 of Schedule C.
Final Conclusion: The product falls within the specific taxable category of medicine and not the residuary or toilet-article entries, so the assessee succeeds on the reference.
Ratio Decidendi: For sales tax classification, the true character of a product must be determined by its common parlance identity, essential use, composition and advertised purpose; a product intended and used as a remedial agent for skin ailments is medicine even if it contains non-medicinal ingredients and is not a toilet article merely because it may have cleansing or grooming-associated effects.
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