Tax classification turns on the local schedule entry, and outside-statute classifications cannot override it.

Product classification under the Madhya Pradesh Commercial Tax Act, 1994 was determined by the specific schedule entries in that statute. The Court held that where the local taxing statute clearly covers goods under the cosmetic and toilet articles entries, those entries govern the rate of tax and there is no need to rely on classifications under central excise law or the Drugs and Cosmetics Act, 1940. Authorities dealing with other enactments were found not to assist because each statute must be interpreted on its own terms. The products were therefore treated as falling under Entry 41 and Entry 49 of Part III Schedule II, not as drugs and medicines under Entry 11 of Part IV Schedule II.

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Issues: Whether the specified products manufactured by the respondent were classifiable under Entry 41 and Entry 49 of Part III Schedule II of the Madhya Pradesh Commercial Tax Act, 1994, or under Entry 11 of Part IV Schedule II as drugs and medicines.

Analysis: The reference turned on classification under the Madhya Pradesh Commercial Tax Act, 1994 itself. The Court held that the schedule entries were clear and specific, leaving no ambiguity requiring recourse to the classification of the same products under other enactments such as central excise law or the Drugs and Cosmetics Act, 1940. Since the local taxing statute specifically covered the products under the cosmetic and toilet articles entries, those entries had to govern the rate of tax. The Court also held that the authorities cited on classification under different statutes did not assist because each statute must be interpreted on its own terms.

Conclusion: The products were held to fall under Entry 41/49 of Part III Schedule II and not under Entry 11 of Part IV Schedule II. The classification adopted by the Appellate Board was upheld and the reference was answered in favour of the Revenue.

Final Conclusion: The Court confirmed that, for tax classification under the local statute, the specific schedule entry applicable to the products must be applied, and the reference stood answered accordingly.

Ratio Decidendi: Where the taxing statute itself specifically classifies a product under a particular schedule entry, that classification governs and recourse to classifications under other statutes is impermissible.

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