TaxTMI 
TaxTMI 
1968 (8) TMI 116
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....her the preparation of medicines on prescriptions of the applicant amounted to a manufacture of 'medicines and pharmaceutical preparations' within the meaning of Notification No. ST-3504/X dated 10th May, 1956, and whether the applicant was assessable to tax on the turnover of the medicines so dispensed." The High Court held that the respondent was not a manufacturer of medicines and pharmaceutical preparations within the meaning of the notification. Against the answer recorded by the High Court, the Commissioner of Sales Tax, U.P., has appealed to this Court with special leave. The respondent is a medical practitioner and in the performance of his professional duties he examines patients, advises them and prescribes medicines which are ....
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....eutical preparations shall not be liable to tax except- (a) in the case of medicines and pharmaceutical preparations imported from outside Uttar Pradesh, at the point of sale by the importer, and (b) in the case of medicines and pharmaceutical preparations manufactured in Uttar Pradesh, at the point of sale by the manufacturer; And the Governor is further pleased to declare that such turnover shall with effect from the said date be taxed at the rate of * *." The respondent is not an importer of medicines and pharmaceutical preparations from outside Uttar Pradesh. That is common ground. The revenue authorities, however, held that when in his dispensary medicines and pharmaceutical preparations as prescribed by him were mixed, the pr....
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....he mixture and the mixture cannot be said to be manufactured within the meaning of the notification. Exemption granted by the notification ceases to apply under clause (a) if the importer of medicines and pharmaceutical preparations manufactured outside the State sells them, and under clause (b) if the manufacturer of medicines and pharmaceutical preparations manufactured in Uttar Pradesh sells them. The scheme therefore is to levy sales tax at one point only, viz., at the point of sale by the importer in respect of medicines imported by him into the State, and at the point of sale by the manufacturer of medicines manufactured by him within the State. If preparation of a mixture of drugs as prescribed by a medical practitioner in his own di....