Surgically implanted intra ocular lenses are medical implants, not external optical goods, for sales tax classification.

Intra ocular lenses supplied and implanted during cataract surgery are classifiable as medical implants under entry 145 of the Kerala General Sales Tax Act, 1963, because they are surgically inserted inside the human body as an artificial replacement for the natural lens. Entry 136, which refers to spectacles, glasses, goggles and lenses, is confined to externally used optical goods and does not extend to a lens implanted during treatment. The tax treatment therefore turns on the therapeutic function and mode of use of the goods, with implanted lenses falling within the specific entry for medical implants.

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Issues: Whether intra ocular lenses supplied and implanted during cataract surgery are taxable as medical implants under entry 145 of the First Schedule to the Kerala General Sales Tax Act, 1963, or as spectacles, glasses, goggles, and lenses under entry 136 of the First Schedule.

Analysis: The implanted lens is not externally used and functions as an artificial replacement for the natural lens during surgery. Goods implanted in the human body for treatment, whether they aid vision or serve other therapeutic purposes, fall within the expression "medical implants". Entry 136 covers externally used optical items such as spectacles, glasses, goggles, and lenses, and does not extend to a lens surgically implanted inside the body.

Conclusion: The intra ocular lenses supplied through cataract surgery are taxable under entry 145 as medical implants and not under entry 136.

Final Conclusion: The tax liability was upheld on the footing that surgically implanted intra ocular lenses fall within the category of medical implants.

Ratio Decidendi: Goods surgically implanted in the human body for therapeutic treatment are classifiable as medical implants when the taxing entry specifically covers such implants, and not under an entry confined to externally used optical goods.

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