Trade tax classification of petroleum jelly turns on drug status, not cosmetic use, where statutory and commercial character prevail.

Petroleum jelly, including Vaseline White Petroleum Jelly, is treated as a drug rather than a cosmetic for trade tax classification. The Drugs and Cosmetics Act defines "drug" broadly, while "cosmetic" is narrower, and white or yellow non-perfumed petroleum jelly is specifically covered in Schedule K and exempted under Rule 123, supporting its drug character. Applying the common parlance and commercial meaning tests, the product was not shown to be used primarily for beautification or ordinary skin care. The Revenue bore the burden of proving a taxable cosmetic entry, but failed to establish any material basis for reclassification.

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Issues: Whether petroleum jelly or Vaseline White Petroleum Jelly is a drug or a cosmetic for the purpose of trade tax classification.

Analysis: The statutory definition of "drug" in the Drugs and Cosmetics Act, 1940 is of wide amplitude, while "cosmetic" is defined in a restricted manner. White or yellow petroleum jelly, non-perfumed, is specifically mentioned in Schedule K to the Drugs and Cosmetics Rules, 1945 and is exempted under Rule 123, reinforcing its treatment as a drug. The product had consistently been treated by the Revenue and the technical authorities as a pharmaceutical preparation, and no material change was shown to justify a different view. In determining the taxing entry, the Court applied the common parlance and commercial meaning tests, and held that the product was not shown to be used primarily for beautification or ordinary skin care so as to fall within the cosmetic entry. The burden to establish taxable classification lay on the Revenue, which was not discharged.

Conclusion: Petroleum jelly or Vaseline White Petroleum Jelly is a drug and not a cosmetic; the classification adopted by the Revenue could not be sustained.

Ratio Decidendi: Where a product is expressly recognized under the drug regime and the Revenue fails to prove any material change or basis for reclassification, the product must be classified according to its statutory and commercial character as a drug, not as a cosmetic.

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