Expansive definition of drugs brings sanitary pads within exemption for products used to prevent infection and manage bleeding.

Sanitary pads were treated as "drugs" under Section 3(b) of the Drugs and Cosmetics Act because the statutory definition is wide enough to cover products used for treatment or prevention of disease or infection. Relying on the earlier view that non-medicated surgical dressings fall within that definition and on the Ministry's clarification covering absorbent cotton wool, gauzes and bandages, the Court held that sanitary pads used to manage bleeding and prevent infection share the same character. The common parlance test was held inapplicable where the statute provides an expansive definition, and the exemption under Notification No. 55/75-CE was therefore available under Tariff Item 68.

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Issues: Whether sanitary pads, being hospital/maternity/sanitary pads, are "drugs" within the meaning of the Drugs and Cosmetics Act and are therefore entitled to exemption under Notification No. 55/75-CE under Tariff Item 68.

Analysis: The classification turned on the statutory meaning of "drugs" in Section 3(b) of the Drugs and Cosmetics Act, which is wide enough to include substances used in the treatment or prevention of disease. The Court relied on the earlier Division Bench view treating non-medicated surgical dressings as drugs, as well as the Ministry's clarification that absorbent cotton wool, gauzes, bandages and similar surgical dressings fall within the definition. Sanitary pads were treated as absorbent cotton material used to hygienically manage bleeding and prevent infection, and the common parlance test was held inapplicable in the face of the statutory definition.

Conclusion: Sanitary pads are drugs for the purpose of the exemption notification and the petitioners were entitled to exemption under Notification No. 55/75-CE under Tariff Item 68.

Ratio Decidendi: Where a statute gives an expansive definition of "drugs", products used for treatment or prevention of disease or infection fall within that definition and the common parlance test cannot override the statutory meaning.

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