https://www.taxtmi.com/article/detailed?id=8510 Whether an empty capsule shell used with medicines is a drug for VAT classification. The petitioner, manufacturing empty hydroxypropyl cellulose and gelatin capsule shells under a drugs licence, sought inclusion under the drugs and medicines VAT entry; the Commissioner treated the shells as outside that entry citing lack of exclusive medicinal use. The High Court held that manufacture under a drugs licence is not decisive, exclusivity of use must be established, and on the record the capsule shells do not fall within the drugs entry and are classifiable under the residual tax entry. en-us Wed, 22 May 2019 05:55:28 +0530 Wed, 22 May 2019 05:55:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=8510 Whether an empty capsule shell used with medicines is a drug for VAT classification. The petitioner, manufacturing empty hydroxypropyl cellulose and gelatin capsule shells under a drugs licence, sought inclusion under the drugs and medicines VAT entry; the Commissioner treated the shells as outside that entry citing lack of exclusive medicinal use. The High Court held that manufacture under a drugs licence is not decisive, exclusivity of use must be established, and on the record the capsule shells do not fall within the drugs entry and are classifiable under the residual tax entry. Articles Value Added Tax - VAT and CST Wed, 22 May 2019 05:55:28 +0530 https://www.taxtmi.com/article/detailed?id=8510