TaxTMI 
TaxTMI 
2008 (7) TMI 870
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....econd Appeal No. 76 of 2007 and Second Appeal No. 77 of 2007, which are allowed by the said authority by a common judgment challenged in these revisions. In all these four revisions, the question of law involved is as under: "Whether 'Chlormint candy', 'Chlormint gum', 'Chlormint ice', 'Chlormint ice gum', 'Chlormint with herbasole', 'Happydent', 'Gum draggy', 'chewable gum draggy', and 'Chatar patar', are, wrongly held to be ayurvedic medicine by the Trade Tax Tribunal?" Heard learned counsel for the parties at length. Brief facts of the case are that the respondent/assessee, Perfetti Van (India) Pvt Ltd., is registered under the Uttaranchal Value Ad....
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....r per cent, which is applicable to the ayurvedic medicines. The case of the assessee/respondent is that the aforesaid items are ayurvedic medicines and as such, the tax is payable on the said items at the rate of four per cent. The assessing officer, the first appellate authority, i.e., the Joint Commissioner, Trade Tax, rejected the assessee's contention and held that the items manufactured and sold by the assessee are confectionary items and not ayurvedic medical preparations. Aggrieved by the said judgment, the aforesaid four appeals were filed by the assessee before the Trade Tax Tribunal, who accepted the case of the assessee and allowed the four appeals. Hence these revisions. Shri Sudhir Kumar, learned counsel for the revis....
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....ni) including vaccines, syringes and dressings, medicated ointments produced under drug licence and the light liquid paraffin of IP Grade". The words "drugs" and "medicines" are not defined in the Uttaranchal Value Added Tax Act, 2005. To interpret the words "drugs" and "medicines", learned counsel for both the parties, referred to definitions given in section 3(a) and section 3(h) of the Drugs and Cosmetics Act, 1940. Clause (a) of section 3 of the said Act, reads as under: "(a) '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 wi....
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....ioned. On the basis of properties mentioned of peppermint and pudeena, it is argued that the items manufactured by the assessee have medicinal value and for the reason that the chlormint preparations included the aforesaid peppermint and spear int, as its contents. Therefore, the same are ayurvedic medicines and not the confectionary. On the other hand, Shri Sudhir Kumar, learned Counsel for the revisionist, argued that Haldi (turmeric), Kalimirch (black pepper), etc., also have medicinal values and that does not make everything medicine. What makes an item medicine is formulae for the medicines in its proper dose for the treatment of a disease or disorder. No doubt, merely for the reason that some plant or its leaves, stem, or fruit ....
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....by authorised books of medicines, which are not prescribed by doctors and not required to be purchased necessarily from the approved chemists are also medicines, provided the same are manufactured under the drug licence issued under the Drugs and Cosmetics Act, 1940. In the present case, the items-"Chlormint" and "Happydent" are manufactured by the assessee/respondent under the drug licence issued to it by the Directorate of Ayurvedic Medicines of State of Haryana. As to the formulations, the quantity of "Chlormint with herbasole" and "Happydent" are also mentioned in the covers they are sold (as is apparent from annexures filed with counter-affidavit). As to the utility of "Chlormint with herbasole" as mouth fresheners and that of "Happyde....