Specific statutory classification prevails for cosmetics and toilet articles under the M.P. tax schedule, displacing external classification tests.

Specific tariff entries in the M.P. Commercial Tax Act, 1994 controlled the classification of the assessee's products: face creams and similar cosmetics fell within Entry 41, and toothpaste, tooth powder, hair oils, face powder, talcum powder and toilet soap fell within Entry 49 of Part III of Schedule II. Because the statute itself expressly covered these goods, external classification principles or classifications under another fiscal enactment could not override the statutory entries. The earlier contrary view was treated as per incuriam for failure to notice the relevant schedule entries, and the applicable tax rate was 12% under the specified entries.

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Issues: Whether the five products manufactured and sold by the assessee were classifiable under Entry 11 of Part IV of Schedule II as drugs and medicines, or under Entries 41 and 49 of Part III of Schedule II as medicinal preparations of cosmetics/toilet articles, for the purpose of levy of tax under the M.P. Commercial Tax Act, 1994.

Analysis: The products were covered by specific entries in Schedule II under Section 9(1) of the Act, namely Entry 41 for face creams and other cosmetics including medicinal preparations thereof, and Entry 49 for tooth paste, tooth powder, hair oils, face powder, talcum powder, toilet soap and other toilet articles including medicinal preparations thereof. Once the statute itself expressly classifies the goods under these entries, there is no scope to resort to external classification principles or to read classification from another fiscal statute. The earlier view treating the matter differently was treated as per incuriam because the relevant statutory entries had not been noticed.

Conclusion: The products fell under Entries 41 and 49 of Part III of Schedule II and not under Entry 11 of Part IV of Schedule II; tax was therefore leviable at 12%.

Ratio Decidendi: Where the taxing statute itself contains a specific entry covering the goods, that statutory classification prevails and external aids or classifications under another enactment cannot displace it.

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