Essential nature governs sales tax classification of cosmetics and medicines; occasional use does not change a product's basic character.

For sales tax classification, a product is to be assessed by its essential nature and general use, not by occasional alternative use. Petroleum jelly was treated as a cosmetic and toilet requisite under the relevant notification, and creams used generally for skin care were also upheld as cosmetics because the presence of medicinal ingredients did not make them medicines. By contrast, Himtaj Oil retained its basic character as a medicinal oil used for relief from pain, and occasional use as a hair oil did not alter that classification. The stated principle is that the dominant character of the goods governs their tax treatment.

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Issues: Whether the disputed products were liable to be classified as cosmetics or as medicines for sales tax purposes.

Analysis: The classification turned on the essential nature and general use of the goods. Petroleum jelly was specifically covered as a cosmetic and toilet requisite under the relevant notification, so it could not be treated otherwise. The creams in question were found to be used generally for skin care, and the mere presence of medicinal ingredients did not convert them into medicines. In contrast, Himtaj Oil was held by the lower appellate authority to be medicinal oil used for relief from pain, and nothing in the Tribunal's order displaced that basic character. Occasional use of the oil as a hair oil did not alter its essential medicinal nature.

Conclusion: The creams and Vaseline were upheld as cosmetics, but Himtaj Oil was held to be taxable as medicine; the revision succeeded only to that extent.

Ratio Decidendi: Classification of a product for sales tax depends on its essential nature and general use, and occasional alternative use does not change its basic character.

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