Statutory product classification prevails for medicated talcum powder under sales tax law, despite medicinal ingredients.

Nycil prickly heat powder was classified according to the specific sales tax entries in the relevant statutes rather than by its medicinal ingredients alone. Under the Kerala law, the Court applied the specific entry for medicated talcum powder over the broader medicines and drugs entry, holding that the plain statutory classification prevailed. Under the Tamil Nadu law, the explanation expressly brought medicated cosmetic items, including those manufactured under a drug licence, within the toilet powder or cosmetic entry, so the product could not be treated as a medicinal preparation. The statutory text controlled the classification in both enactments.

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Issues: (i) Whether Nycil prickly heat powder was classifiable under the medicines and drugs entry or under the specific entry for medicated talcum powder under the Kerala sales tax law. (ii) Whether Nycil prickly heat powder was classifiable as a medicinal preparation or as a toilet powder under the Tamil Nadu sales tax law, in view of the explanation covering medicated items.

Issue (i): Whether Nycil prickly heat powder was classifiable under the medicines and drugs entry or under the specific entry for medicated talcum powder under the Kerala sales tax law.

Analysis: The product contained medicinal ingredients and had curative or prophylactic attributes, but the Kerala statute contained a specific entry for talcum powder including medicated talcum powder. The legislative wording was treated as deliberate and specific, and the Court held that where a product falls within a specially crafted entry, the specific entry must govern rather than the broader medicines and drugs entry. The labels, composition, and use of the product did not displace the plain statutory classification.

Conclusion: The product was correctly classified under the medicated talcum powder entry and not as medicine or drugs.

Issue (ii): Whether Nycil prickly heat powder was classifiable as a medicinal preparation or as a toilet powder under the Tamil Nadu sales tax law, in view of the explanation covering medicated items.

Analysis: The Tamil Nadu entry excluded products capable of being used as cosmetics or toilet articles from the medicinal entry, and the later explanation expressly included listed cosmetic items even if medicated, including those manufactured under a drug licence. The Court held that the explanation made the legislative intent unmistakable: medicated talcum powder was brought within the cosmetic entry, and the product could not be treated as a medicinal preparation despite its medicinal ingredients or drug licence.

Conclusion: The product was rightly treated as a toilet powder or cosmetic and not as a medicinal preparation.

Final Conclusion: The statutory text in both enactments controlled the classification, and the product fell within the specific cosmetic or medicated talcum powder entries rather than the medicines or drugs entries, leaving no basis to interfere with the High Courts' conclusions.

Ratio Decidendi: Where the legislature has expressly created a specific entry for medicated talcum powder, or has by an explanation clearly included medicated talcum powder within the cosmetic entry, the plain statutory language must be applied and the product cannot be reclassified as medicine or drug on the basis of curative ingredients alone.

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