1968 (2) TMI 110

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.... circumstances of the case, the Tribunal is justified in law in coming to the conclusion that the Ramtirth Brahmi Oil is a perfumed oil?" The Sales Tax Authorities have purported to tax the oil in question under entry 39 of Schedule B to the Bombay Sales Tax Act, 1953, which is in the following terms: "39. Toilet articles except such articles as may be specified by the State Government by notification in the official Gazette." As the Court is concerned in the present references with the period between the 1st of April, 1954, and the 31st of March, 1957, it is common ground that the relevant notification for purposes of the present references is the one dated 19th November, 1954, which is in the following terms: "No. STA. 1054-XII-I....

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....port it appears that two tests were carried out on the sample of Ramtirth Brahmi Oil which was submitted for analysis to the said laboratories. One was the steaming and distillation test, and the other was the alcoholic test, and the result of both those tests was stated in the said report as being that the Ramtirth Brahmi Oil did "not contain any added perfume or compound with pleasant odour". Mr. Banaji has, however, contended, on the strength of two authorities which were cited by him, one of the Madhya Pradesh High Court in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Shri Sadhna Aushadhalaya[1963] 14 S.T.C. 813. and the other of the Supreme Court in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, Akola, and Another[1961]....

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.... toilet use. It is clear that medicinal and other preparations which may have a salutary effect on the health of consumers should not be taxed, but oils used for toilet purposes which are merely perfumed for the purpose of, what may be said to be, alluring customers into using them, though they have no other medicinal properties, should be taxed. It is, therefore, quite clear that if one has regard to the object which underlies the distinction that is sought to be made between perfumed oils on the one hand, and all other oils for toilet use on the other, it fortifies the construction which we have placed upon the expression "perfumed oil" as a matter of plain language. In the light of this construction of the expression "perfumed oil", w....