Statutory definition of drug: tooth powder-like Lal dantamanjan falls under residual sales tax entry

Lal dantamanjan was considered against the statutory definition of "drug" in section 3(b) of the Drugs and Cosmetics Act, 1940 and the corresponding sales tax entries. The product had to be shown as a medicine intended for cure, treatment, mitigation or prevention of disease to fall within item 37; on the record, it was used mainly for cleansing teeth, maintaining healthy gums and freshening breath, and was sold like a tooth powder. It was not established to be prescribed for any specific disease or prepared as an Ayurvedic medicine in accordance with an authoritative prescription, so it fell within the residual item 105.

---

---

Issues: Whether Lal dantamanjan is a drug within section 3(b) of the Drugs and Cosmetics Act, 1940 and therefore taxable under item 37, or whether it falls under the residual item 105 of the Orissa Sales Tax Act, 1947.

Analysis: Item 37 covered drugs as defined in section 3(b) of the Drugs and Cosmetics Act, 1940, while the residual item applied to all other goods. The product had to satisfy the statutory definition of drug by showing that it was a medicine intended for cure, treatment, mitigation or prevention of disease. The materials on record showed that the product was used mainly for cleansing teeth, healthy gums and bad breath, was sold like tooth powder, and was not shown to be prescribed for any specific disease or to have been prepared as a medicine in accordance with the authoritative Ayurvedic prescription.

Conclusion: Lal dantamanjan is not a drug within section 3(b) of the Drugs and Cosmetics Act, 1940 and is taxable under the residual item 105.

Ratio Decidendi: A product primarily used as a tooth powder or toilet preparation, and not shown to be a medicine for treatment of disease, does not fall within the statutory definition of drug and is taxable under the residual entry.

---