2008 (8) TMI 590

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....assessment year 1993-94. The dealer opposite party carries on the business of purchasing and selling of liquid glucose, maize starch, Essence. The dispute in the present revision, as noted above, is confined to the rate of taxability of liquid glucose. The acceptance of the account books is also not in question. The assessing authority after rejecting the contention of the dealer that it is nothing but a medicine, held that the liquid glucose is taxable at the rate of 10 per cent under the residuary entry being unclassified item by the order dated 20th of August, 1997. The said part of the order was confirmed in appeal but has been set aside by the Tribunal by the order under revision. In the memo of revision the following questions of law ....

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....nd while doing so, the Tribunal has rightly taken into consideration the Circular dated 23rd of May, 1997 referred to in the order of the Tribunal as also the fact that in the purchase and sale vouchers the dealer has treated it as medicine. 6. Considered the respective submissions of the learned counsel for the parties and perused the record. On scrutiny of the account books of the dealer, the assessing authority found that the dealer has sold the liquid glucose to the manufacturers of toffee and biscuits. It has not been sold as medicine. It has been further found that the liquid glucose is not a medicine as the same has been sold in drums and was not manufactured by the manufacturer having license to manufacture the drugs. In the m....

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.... medicine is a different thing. 9. The second reasoning given by the Tribunal is that the percentage of glucose in the article in question is less than 90%. It is manufactured out of maize wherein the percentage of glucose is very low. It has come on the record that the syrup of liquid glucose is used in the production of jam, jelly and bakery items. The assessing authority has recorded a finding that the article in question is not sold in bottles but in drums. The said item is different from the glucose which are sold in bottles and administered to the patients. The glucose sold in bottles are medicated one and only such glucose can be treated as a medicine. But the glucose sold by the dealer opposite party was obtained from Bharat S....

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....in glassware does not ordinarily deal in clinical syringes, thermometers, lactometers etc. which articles though made of glass are normally available in medical stores or with manufacturers thereof like the assessee therein. 13. Applying the above principle to the facts of the present case and keeping in view the ultimate user of the article in question i.e. the liquid glucose, it is beyond imagination to treat the commodity in question liquid glucose as drugs or medicine administered to the patients sold in bottles through the medical shops and hospitals. The commodity in question is neither being manufactured by medicine or drug manufacturer nor is being dealt with by the persons dealing in medicine nor it is being used as medicine ....