Drug classification for sales tax purposes sustained where price control approval treated the product as a regulated drug.

Johnson prickly heat powder was treated as a drug for sales tax classification because the controlling Government of India approval regulated its price under the Drugs (Prices Control) Order, 1970 and specifically included the product. On that regulatory basis, the Tribunal's classification under the drugs entry was sustained, and the product was held to fall under entry 37 rather than entry 36 of the Andhra Pradesh General Sales Tax Act.

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Issues: Whether Johnson prickly heat powder was classifiable as a drug under entry 37 of the First Schedule to the Andhra Pradesh General Sales Tax Act or as an item falling under entry 36.

Analysis: The controlling letter of approval issued by the Government of India regulated the prices of drugs and specifically included Johnson prickly heat powder. That approval was issued under para 11 of the Drugs (Prices Control) Order, 1970, supporting the view that the product was treated as a drug for regulatory purposes. In that background, the Tribunal's classification of the product under the drugs entry was sustained.

Conclusion: The product was rightly treated as falling under entry 37 and not under entry 36.

Ratio Decidendi: Where the regulatory framework treats a product as a drug and controls its price as such, that treatment is a strong basis for classifying the product under the corresponding sales tax entry for drugs.

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