Alcohol in medicinal preparations attracts excise duty even when introduced indirectly through an alcoholic ingredient.

Medicinal preparations are dutiable under Item 1 of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 when they contain alcohol, even if the alcohol is introduced indirectly through an ingredient such as tincture. The statutory wording requires only that the preparation contain alcohol; it does not require direct addition of pure alcohol in free form. Preparations that are medicinal, proprietary and not capable of being consumed as ordinary alcoholic beverages therefore fall within the duty net. The rebate provision in Section 4 was treated as consistent with this reading, confirming the legislative contemplation of duty on such preparations.

---

---

Issues: Whether medicinal preparations are exigible to duty under Item 1 of the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 when alcohol is present in them through a component such as tincture and not added directly in free form.

Analysis: Section 3(1) levies excise duty on dutiable goods at the rates specified in the Schedule, and Item 1 covers medicinal preparations being patent or proprietary medicines containing alcohol and not capable of being consumed as ordinary alcoholic beverages. On the admitted facts, the preparations were medicinal, proprietary, non-beverage preparations and contained alcohol because tincture, one of their ingredients, itself contained alcohol. The statutory language requires only that the preparation contain alcohol; it does not require direct addition of pure alcohol. The rebate provision in Section 4 was also treated as supporting the legislative contemplation of duty on such preparations.

Conclusion: The preparations were held dutiable notwithstanding that alcohol reached them indirectly through another ingredient, and the appellant's challenge failed.

Ratio Decidendi: A medicinal preparation attracts duty under Item 1 if it contains alcohol in any form, including through an alcoholic ingredient, and direct addition of pure alcohol is not required by the statute.

---