1991 (3) TMI 350

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....by item 95 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959. The assessing authority also assessed the assessee in respect of purchase turnover under section 7-A of the Act for jaggery and castor oil and gingelly oil for Rs. 1,000 and Rs. 1,500, respectively. The total and taxable turnover thus, proposed was Rs. 29,828. The objections of the assessee that unani drugs were prepared by him and they did not come under the definition of drugs and medicines and therefore could not be subjected to assessment under item 95 of the First Schedule to the Act failed before the assessing authority. Aggrieved, the assessee filed an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner maintained t....

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..... 3.. In T.C. (R) No. 1117 of 1981 the sale turnover of the country drugs amounting to Rs. 15,019 was assessed under item 95 of the First Schedule at 8 per cent, besides assessment of the purchase turnover under section 7-A of the Act in respect of jaggery and vegetable oil for Rs. 500 and Rs. 1,000, respectively by the assessing authority. The total taxable turnover assessed by the assessing authority was Rs. 16,519. An appeal was preferred by the assessee, and except for maintaining the assessment under section 7-A, the appeal was allowed and the tax levied at 8 per cent on a turnover of Rs. 15,019 was set aside. The taxable turnover of the assessee was redetermined at Rs. 1,500. In the further appeal before the Tribunal, the order of ....

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....sion "medicinal mixtures or compounds" is wide enough to take within its fold medicines other than those covered by "drugs, patent or proprietary medicines". The opening words of item 95, viz., "drugs, patent or proprietary medicines as defined in section 3 of the Drugs and Cosmetics Act, 1940" do not control the succeeding expression "or medicinal mixtures or compounds........" Thus, construed it becomes obvious that the sale of the medicines prepared under the unani system of medicines would be covered by item 95 of the First Schedule to the Act. The appellate authority fell in absolute error when it held that since the assessee did not take out any licence under the Drugs and Cosmetics Act, 1940, the goods were not liable to be assess....