Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2018 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1971 - HC - VAT and Sales TaxClassification of goods - Empty Har Gelatin Capsules - contention of the petitioner is that empty HPMC Capsule Shell are made of Hydroxy Propyl Methyl Cellulose and are used by Pharmaceutical Industries for filling medicines - Whether HPMC (Hydroxy Propyl Methyl Cellulose) Capsule Shells are taxable as per entry No.5 of Part-IV of Schedule-II of Madhya Pradesh VAT Act, 2002 and therefore, taxable @ 14%? HELD THAT:- M erely because the capsules manufactured by the petitioner is being manufactured on account of inclusion of the same in the drug licence, it can never be said that its a drug. The learned Commissioner has observed that certain cosmetics are also manufactured under the drug licence and therefore, if the analogy given by the petitioner is accepted then all cosmetics will have to be included under the heading of drug. This Court after hearing learned counsel for the parties, as it is not established that the capsule in question is exclusively used for the purpose of drugs only, is of the opinion that the learned Commissioner was justified by rejecting the prayer of the petitioner and the entries under the VAT Act as reflected in the schedule are very clear, once the capsule manufacture by the petitioner is not included under the category of drugs, it has to be charged under the residuary entry. Petition dismissed.
|