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2016 (1) TMI 1230 - HC - VAT and Sales TaxClassification of manufactured products - Shower to Shower - Listerine Mouthwash - Savlon - whether the products could be classified as drugs or not? Held that: - Insofar as “Shower to Shower” and “Listerine Mouth Wash” are concerned, these two products can be used by any person irrespective of prescribing by a medical doctor for one to feel fresh and to avoid/remove body odour or to remove bad smell in body/mouth, and in my view these are products which are freely available in the market and merely because there may be some percentage of acid or ethanol or similar ingredients, it cannot be said that they can be said to be like a medicine or even can be said to be a medicine or a drug - even if the licensing authorities may grant permission to the producers / manufacturers as drug but they cannot be treated as a drug or medicine when specific entries under the Sales Tax laws are required to be looked into and considered - petition dismissed and claim of petitioner rejected in relation to these two products. Savlon - Held that: - The Apex court in the case of IPCA Health Products & Pvt. Ltd. v. CCE [2014 (6) TMI 861 - BOMBAY HIGH COURT] was considering a case of Hexiperp, Hexiscrub (Surgiscrub) and Hexiaque, which also contain Chloral Hex dine Gluconate Solution BP, which is also available in “Savlon” and held it to be a medicine. Imposition of penalty - Held that: - The Apex court as well as this court have in identical cases held that when there is an issue of classification and issue being debatable, the penalty is not leviable/imposable/sustainable - The judgment in the case of Sree Krishna Electricals v. State of Tamil Nadu & Another [2009 (4) TMI 428 - SUPREME COURT OF INDIA] so also judgment of this court in the case of CTO v. Bambino Agro Industries Ltd. [2015 (9) TMI 1504 - RAJASTHAN HIGH COURT] are sufficient to refer for non imposition of penalty. Petition dismissed - decided partly in favor of assessee and partly in favor of revenue.
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