TaxTMI 
TaxTMI 
1997 (2) TMI 124
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndia) Limited, the assessee-company was granted a licence by the Drugs Controller under the Drugs and Cosmetics Act, 1940. It was amended on September 7, 1987. Under this licence, the assessee was entitled to produce inter alia Zinc Oxide Adhesive Plaster B.P.C. (Leukoplast), Surgical Wound Dressing (Handyplast); Balladona Plaster B.P.C.; Capsicum Plaster B.P.C. and Cotton Crape Bandages B.P.C. (Leukocrapes). 2The aforesaid goods or products were liable to. local sales tax as well as Central Sales Tax and prior to 1-11-1981, the rate of the local sales tax leviable on them was at the rate of 6 per cent and under Section 8(2A) of the Central Sales Tax Act, the rate of tax was 4 per cent. By the Notification No. 14/41/81-Fin. (R & C)....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for refund of the duty paid in excess of local and Central sales tax levied and collected as a result of the Sales tax assessment which had been completed. They also filed revised sales tax returns for the assessment periods, 1-1-1985 to 31-12-1985 and 1-1-1986 to 31-12-1986. However, despite these two letters, no action was taken by the State of Goa as regards the claim for refund of the Central and local sales tax collected in excess. They further prayed for the completion of the assessment proceedings which were still pending for the subsequent periods, that is, from 1-1-1983 to 31-12-1986. 6They further contended that after the admission. of the writ petition, the Assistant Sales Tax Officer made orders dated December 24, 1987....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he products manufactured by the assessee-company had to be treated as ``drugs and medicines'' and the writ petition was entitled to succeed. 9 There was a second writ petition in which the. dispute was in respect of entitlement to refund of tax payable under mistake of law. Following the decision in the first writ petition, the second writ petition was also decided in favour of the assessee-company with some modifications. 10 The State has come up in appeal, we have heard. the case in extenso. The dispute basically centres around the contention of the assessee that its products like Zinc Oxide Adhesive Plaster B.P.C. (Leukoplast); Surgical Wound Dressing (Handyplast); Balladona Plaster B.P.C.; Capsicum Plaster B.P.C. and C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....synthesised vitamin C. It had a prophylactic function when taken by those who needed vitamin C. It was sold and advertised on the basis of that function. The plaintiffs sought a declaration that Ribena was a ``drug or medicine'' and was entitled to the benefit of exemption from Purchase Tax Act, 1936. It was held by the House of Lords that Ribena could not be treated as a drug or medicine. In coming to this decision certain interesting observations were made which have to be borne in mind. 12 Lord Reid pointed out that in the Purchase Tax. Act, ``medicine'' had not been defined. So it had to be understood as an ordinary word of English language. Lord Reid observed : ``As with so many English nouns there is no clear limit to the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... out. Can the product be called a medicament at all? Is it used to cure or alleviate or to prevent disease or to restore health or to preserve health? Are these products treated as drugs or medicines in common parlance? These are basically questions of fact. There was no reason for the assessee-company to by-pass the statutory remedy and come to the Court with a writ petition. These questions basically of fact should be agitated before the statutory appellate authority. 16In the case of. Titaghur Paper Mills Co. Ltd. and another v. State of Orissa and another, (1983) 142 ITR 663, a Bench of three Judges of this Court pointed out the inadvisability of entertaining a writ petition questioning a sales tax assessment. This Court held :....