Common-parlance meaning of "medicine" upheld for medicinal herbs; jari booti retained exempt character despite processing.

Where a sales tax exemption notification used the term "medicine" without definition, the expression was construed in its ordinary common-parlance sense. A substance qualifies as medicine if it is used for treatment and possesses curative value; processing such as powdering or mixing does not remove that character when the item is primarily sold for medicinal qualities. On that basis, jari booti, recognised as medicinal herbs in the ayurvedic system and valued for curative properties, were treated as medicines under the notification, so the local turnover remained exempt from tax.

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Issues: Whether jari booti sold locally by the assessee constituted "medicines" for the purposes of the sales tax exemption notification, so that no tax was exigible on the turnover.

Analysis: The term "medicine" was not statutorily defined and therefore had to be understood in its ordinary and common parlance sense. A medicine is a substance or preparation used in the treatment of diseases and must possess curative power. The fact that a substance requires processing, such as being reduced to powder or mixed with other drugs before use, does not destroy its medicinal character if it is valued and sold primarily for medicinal qualities. Jari bootis are medicinal herbs, also known as ban aushadhi, and are recognised in the ayurvedic system of medicine for their curative properties.

Conclusion: Jari booti were rightly treated as medicines under the notification, and since the assessee purchased them locally, no tax was payable on their turnover.

Final Conclusion: The revision was without merit and the exemption-based treatment of the disputed turnover was upheld.

Ratio Decidendi: Where a term is not statutorily defined, it must be construed in its common parlance sense, and a substance retains its medicinal character if it is primarily valued for curative properties even though some processing is required before use.

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