Retrospective tax amendment rejected for ayurvedic medicine exempt under the Schedule's unamended text.

Ayurvedic medicines were exempt under item 28(d) of the Schedule to the Assam Finance (Sales Tax) Act, 1956 as it stood for the relevant assessment period, and the later 1972 words inserted into item 67 could not be given retrospective effect. On the unamended text applicable to the period ending 31 March 1969, the ayurvedic preparation mritasanjiwani sura could not be brought to tax as a spirituous medicinal preparation containing more than 12 per cent alcohol. The levy was therefore unsustainable and was set aside in favour of the petitioner.

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Issues: Whether ayurvedic medicine mritasanjiwani sura was liable to Finance sales tax under the Schedule to the Assam Finance (Sales Tax) Act, 1956 for the assessment period ending on 31 March 1969.

Analysis: The Schedule then in force exempted Ayurvedic, Homoeopathic and Unani medicines under item 28(d). Item 67 dealt with spirituous medicinal preparations containing more than 12 per cent alcohol, but the words later inserted in 1972 did not have retrospective operation. On the unamended text applicable to the relevant period, there was no basis to bring the ayurvedic preparation to tax under item 67, and the later amendment could not be read into the earlier assessment year.

Conclusion: The medicine was not liable to Finance sales tax for the relevant period, and the levy was rightly set aside in favour of the petitioner.

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