Classification of medicated talcum powder: product treated as a cosmetic article, not a medicine or drug entry.

Nycil prickly heat powder was held to be a medicated talcum powder classifiable under Entry 1(iii) of Part F of the Tamil Nadu General Sales Tax Act rather than a medicine or drug under Entry 20(A) of Part C. The relevant entries were read with the definitions of "drug" and "cosmetic" in the Drugs and Cosmetics Act, 1940, and Entry 20(A) was treated as confined to medicinal formulations ready for treatment, mitigation or prevention of disease or disorder. Because Entry 1(iii) expressly covers talcum powder and extends to medicated articles even when manufactured under a drug licence, the product's composition and use supported classification as a cosmetic article.

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Issues: Whether nycil prickly heat powder is classifiable as a medicine or drug under Entry 20(A) of Part C of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, or as talcum powder under Entry 1(iii) of Part F of the First Schedule.

Analysis: The relevant entries were read with the definitions of "drug" and "cosmetic" in the Drugs and Cosmetics Act, 1940. Entry 20(A) applies only to medicinal formulations or preparations ready for use for treatment, mitigation or prevention of diseases or disorders. Entry 1(iii) expressly covers talcum powder and other cosmetic articles, and its explanation extends the entry to items even if medicated or manufactured under a drug licence. The composition and use of the product showed that it was essentially a medicated talcum powder intended to absorb sweat and moisture and to prevent prickly heat, and not a drug or medicine falling within the special medicine entry.

Conclusion: The product falls under Entry 1(iii) of Part F of the First Schedule and not under Entry 20(A) of Part C of the First Schedule.

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