Homeopathic product classification under sales tax law turned on its medicinal character, not as a general hair oil or cosmetic.

Aswini Homeo Hair Oil was treated as a homeopathic medicine, not a general hair oil or cosmetic, for classification under the Andhra Pradesh General Sales Tax Act, 1957. The product contained homeopathic ingredients and was manufactured under a licence for homeopathic medicine for external use, and that factual foundation was not effectively challenged. On that basis, the product fell within Entry 37 of Schedule-I for assessment years 1994-1995 and 1995-1996. The later amendment to the entries was confined to subsequent years and did not alter the classification for the relevant period.

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Issues: Whether the product manufactured by the assessee, namely Aswini Homeo Hair Oil, was classifiable under Entry 37 of Schedule-I to the Andhra Pradesh General Sales Tax Act, 1957 as a medicine or under Entry 36 as a general hair oil or cosmetic product for the relevant assessment years 1994-1995 and 1995-1996.

Analysis: The product contained homeopathic ingredients such as Arnica Mount Q, Cantharis Q, Cinchona Q and Pilocarpine Q, and the assessee relied on the licence issued for manufacture of homeopathic medicine for external use under the Drugs and Cosmetics law. The earlier assessment had treated the product as covered by Entry 37, while the revenue sought to classify it as a general hair tonic. The product's homeopathic character and the absence of any contrary challenge to that factual basis led to acceptance of the assessee's claim for the relevant period, especially since the later amendment of the entries was confined to subsequent years.

Conclusion: The product was rightly assessed under Entry 37 of Schedule-I to the Andhra Pradesh General Sales Tax Act, 1957 for assessment years 1994-1995 and 1995-1996, and the assessee succeeded on the classification issue.

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