Common parlance test brings water for injection within medicines and pharmaceutical preparations for lower tax treatment.

For sales tax classification, commodity meaning in common or commercial parlance governed the entry, not a purely scientific or technical meaning. On that test, water for injection was treated as a specially prepared sterile product regulated as a drug, sold through chemists and druggists, and recognised in the Indian Pharmacopoeia. Earlier decisions relied on by the Tribunal were distinguished because they addressed exemption or different issues. The concept of medicine was read as broad enough to include products used as aids to treatment and alleviation of human suffering. Water for injection therefore fell within "medicines and pharmaceutical preparations" and was taxable at the lower rate; the contrary view was wrong in law.

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Issues: Whether "water for injection" manufactured and sold by the dealer fell within the entry "medicines and pharmaceutical preparations" and was liable to tax at the lower rate, or was assessable as an unclassified item.

Analysis: For classification under a sales tax notification, the controlling approach is the meaning attributed to the commodity in common or commercial parlance by those dealing in it, rather than a purely scientific or technical meaning. The earlier decisions relied on by the Tribunal were distinguished because they addressed exemption or a different question and did not decide whether water for injection was covered by the notification as a medicine or pharmaceutical preparation. The material from the Drugs and Cosmetics Act, 1940 and the Drugs and Cosmetics Rules, 1945 showed that water for injection is a specifically prepared sterile product, regulated as a drug, sold through chemists and druggists, and recognized in the Indian Pharmacopoeia. The concept of medicine was treated as not static and capable of including products used as aids to treatment and alleviation of human suffering.

Conclusion: "Water for injection" is covered by the entry "medicines and pharmaceutical preparations" and is taxable at the lower rate. The Tribunal's contrary view was wrong in law.

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