TaxTMI 
TaxTMI 
1996 (4) TMI 480
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....turer of "Swad" tablets. For the assessment year 1989-90, the petitioner deposited tax on the sale of "Swad" tablets at the rate of 6 per cent, treating it as an ayurvedic medicine. By his order dated November 4, 1992, the assessing authority disallowed the petitioner's claim of "Swad" as an ayurvedic medicine and held that it was a confectionery article, accordingly levied tax at the residuary rate of 10 per cent, and created a demand at the difference rate. of 4 per cent with interest under section I IB of the old Act. In respect of the assessment year 11986-87, the case was reopened under section 12 of the "old Act" and order levying tax on the sale of "Swad" at the rate of 10 per cent was passed. Appeals were filed against these orders and were dismissed by the Deputy Commissioner (Appeals), Jaipur, by his common order dated May 7, 1993. The petitioner filed the second appeals before the Tax Board and they were also dismissed by its common order dated June 14, 1995. 3.. It has been contended by the teamed counsel for the petitioner that the authorities below have seriously erred to hold that "Swad" is a confectionery article and not an ayurvedic medicine despite the fact tha....
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.... Only "OS" is mentioned. The total weight of aforesaid other ingredients is 104 Mgms. Sugar has not been defined in the old Act. Section 14(viii), Central Sales Tax Act, 1956, runs as under: "(viii) Sugar covered under sub-heading Nos. 1701.20, 1701.31, 1701.39 and 1702.11 of the Schedule to the Central Excise Tariff Act, 1985." It has been held in C.T.O. v. Heeralal Murlidhar 1993 Tax World 32 (RHC), that the Central Sales Tax Act can be taken as a guide for interpreting the word "sugar" for the Rajasthan Sales Tax Act. Chapter 17 of the Central Excise Tariff Act, 1985, deals with sugar and sugar confectionery. Its note No. 2 runs as under: "For the purpose of sub-heading numbers 1701.10, 1701.20, 1701.31, 1801.39 and 1702.11 sugar means any form of sugar in which the sucrose content if expressed as a percentage of the material dried to constant weight at 105°C would be more than 90." It cannot, therefore, be said that "Swad" is sugar and it is entitled for exemption from payment of tax. In C.T.O. v. Heeralal Murlidhar 1993 Tax World 32, sucrose contents were more than 90 per cent, in sugar candy and as such it was held to be exempted from tax. 6.. The next que....
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.... Cosmetics Act, 1940, states: In this Act, unless there is anything repugnant in the subject or context: "'Ayurvedic, siddha or unani drug' includes all medicines intended for internal or external use for or in the diagnosis, treatment, mitigation or prevention of disease or disorder in human beings or animals, and manufactured exclusively in accordance with the formulae described in the authoritative books of Ayurvedic, Siddha and Unani (Tibb) systems of medicine specified in the First Schedule." Accordingly, ayurvedic, siddha and unani drugs include all medicines Manufactured exclusively in accordance with tie formulae prescribed in the authoriitative books of these system of medicines and specified in the First Schedule of the Drugs and Cosmetics Act, 1940. "Ayurvedic Formullary of India"' has stated in its preface, introductory chapter and the "Legal Notice" chapter that the ayurvedic products should be prepared strictly as per formulae given in the authoritative text books or as per formulae given in it. The petitioner has not pointed out the formula of "Bhav Prakash" which has been adopted for manufacturing "Swad". It is not manufactured strictly in accordance wi....
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....ties is that the product is not in accordance with the standard ayurvedic book nor is supported by any clinical trials. The liquid glucose, which is added in the tablet is nowhere provided as an ingredient in the preparation of the ayurvedic medicines. By adding the liquid glucose the product falls out of the ambit of the definition of ayurvedic medicine stipulated in section 3(h)(i) of the Cosmetics Act, 1940. The proportion of the ayurvedic ingredients in the medicine is only 3 per cent, whereas the contents of sugar are 97 per cent. As such the curative effect, if any, of the medicine is lost and actually branding it as an ayurvedic medicine is for the sole purpose of evading excise duty." In para No. 29, it is observed: "There is not an iota of evidence to show that this product is sold as a confectionery and is commonly used as a confectionery by the consumer." 9.. In these cases, the petitioner has not produced the following: (1) Product literature of the "Swad". (2) Evidence of any practising Vaidbya recommending "Swad " as a medicine. (3) Evidence from the trade to show that these tablets are being marketed and accepted as me....