2013 (4) TMI 22

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....f 12%. The entries read as follows. "41. Scents, perfumes, hair tonics, hair creams, hair oils, hair shampoo, depilatories, face creams, snows, lipstics, rougue, nail polish and other cosmetics including medicinal preparation thereof." "49. Tooth paste, tooth powder, hair oils, face powder, talcum powder, toilet soap, washing soap] and other toilet articles including medicinal preparation thereof, combs, brushes, razors and razor blades." (Emphasis supplied) There is yet another entry which is relevant and which attracts only 8% Commercial Tax or Sales Tax which is Entry no.11 of Part-IV of Schedule II, which reads as follows: "11. Drugs and medicines excluding those specified elsewhere in this Schedule." In this bunch of ....

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....es of prickly heat. It is not disputed that the powder is scented and therefore could possibly be used as a substitute for talcum powder. We have given due thought to the matter. The words in which Entries 41 and 49 of Part-III of Schedule-II have been drafted leaves little doubt that the words "including medicinal preparation thereof" used along with the cosmetic items mentioned in the entries are intended to avoid evasion of tax by including some medical ingredients in cosmetic items in attempt to take them to Entry 11 of Part-IV which attracts mere 8% of tax. It is quite obvious that because of public sentiments, drugs and medicines have to carry a lower rate of tax as compared to cosmetics. The words "including medicinal preparati....