Medicines exemption under Government Order confined to patient-only sales; sales to strangers fell outside the exemption and were taxable.

Sales of medicines from a Sidha Vaidya's dispensary or Oushadalaya were exempt only where the Government Order covered hospitals, nursing homes and dispensaries dispensing medicines to their own patients. The exemption did not extend to sales made to persons other than patients. On the facts stated, the assessee sold medicines not only to patients but also to strangers, so the sales fell outside the exemption. The Tribunal also noted that the quantum of turnover had not been challenged. Accordingly, the turnover was liable to tax.

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Issues: Whether sales of medicines by a Sidha Vaidya from a dispensary or Oushadalaya were covered by the Government Order exempting sales of medicines by hospitals, nursing homes and dispensaries dispensing medicines to their patients only.

Analysis: The Government Order exempted only sales of medicines by hospitals, nursing homes and dispensaries run by the Government or by medical practitioners, where medicines were dispensed to patients only. The exemption did not extend to sales made to persons other than patients. The assessee was found to have sold medicines not only to patients but also to strangers. The Tribunal also noted that the assessee had not challenged the quantum of turnover before it.

Conclusion: The assessee's sales did not fall within the scope of the Government Order and the turnover was liable to tax.

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