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2014 (5) TMI 413 - HC - VAT and Sales TaxWhether talcum powder includes ‘prickly heat powder’ or otherwise what is the rate at which the prickly heat powder should be taxed - Rate of Tax - Classification - "nycil prickly heat powder" – Entry 20-A of Part C or Entry 1(iii) of Part F of Schedule 1 of Tamil Nadu General Sales Tax Act, 1959 – Held that:- the nycil prickly heat powder, which is used only to absorb sweat and moisture from the body and to keep away rashes in the human beings, cannot be considered to be either a "drug" or "medicine" and it would be only a "talcum powder" - However, in view of the composition, the nycil prickly heat powder is nothing but a medicinal preparation used for the purpose for which the talcum powder is used. There is no dispute that the nycil prickly heat powder is manufactured on the basis of a drug licence issued under the provisions of the Drugs and Cosmetics Act - The price of the product is also regulated, approved and the product is stored under the drug licence - It is very pertinent to note that a similar product manufactured by another assessee, which also claimed that the nycil prickly heat powder is a drug or medicine under the relevant Entries to the Kerala General Sales Tax Act in Heinz India Ltd. v. State of Kerala [2008 (9) TMI 845 - KERALA HIGH COURT] -The Kerala High Court very extensively considered the medicated talcum powder after going through the various definitions of "drug", "medicine", "cosmetic" and "talc", and ultimately came to the conclusion that the medicated talcum powder includes prickly heat powder - The Kerala High Court rejected the contention as to the theory of medicine and also after considering the basic ingredients of prickly heat powder, came to the conclusion that the base product is only a purified talc. This Court is also of the view that after considering the explanation to the main entry, it is only a medicated talcum powder and it certainly includes prickly heat powder also – This Court agrees with the reasoning of the Kerala High Court and hold that the nycil prickly heat powder is not a "drug" and it is only a medicated talcum powder - Accordingly, the issue in favour of the Revenue and against the assessee - Orders of the Tribunal set aside and restore the orders of the assessing authority - Revisions are allowed – Decided in Favour of Revenue.
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