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2013 (8) TMI 868 - MADHYA PRADESH HIGH COURTWhether the "Mediker" is to be classified under an item "drugs and medicine" under the M.P. Commercial Tax Act also and "starch" is not to be treated as the chemical under the E.T. Ac - Held that:- "Mediker" and "starch" admittedly having not been classified under the Entry Tax Act nor is it covered under Schedules I and II of the said Act. Then undoubtedly the charging section is to be taken into consideration and requires to be interpreted. The apex court held already directed that the goods may be charged under the charging section by exclusion or implication and in the present case it has to be considered on the touch stone of the charging section by implication. "Mediker" is basically a medicinal product but is used as shampoo, however, its period of treatment is four weeks and the shampoo is not used generally for washing hair and, therefore, the principle of ejusdem generis is not applicable (Grasim Industries Ltd. [2002 (4) TMI 52 - SUPREME COURT OF INDIA] relied on) and in this sense, it is not the cosmetic and, therefore, both respondents Nos. 2 and 3, Additional Commissioner of Commercial Taxes and Assistant Commercial Tax Officer have erred in charging Mediker and starch under the Entry Tax Act. Moreover it is also out of the purview Schedule III cannot be taxed since both "Mediker" as well as "starch" are used in the production of further products and not meant for sale as is being projected. - Interpretation of the charging section by implication also must be followed in the strict sense, if the article is not taxable goods under the statute then the provisions of the Entry Tax Act cannot be attracted - Decided in favour of assessee.
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