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2017 (1) TMI 202 - RAJASTHAN HIGH COURTClassification of goods - candy, namely “Swad” - classified as Ayurvedic medicine and taxable at 6% or as confectionery item taxable at 10%? - Held that: - any drug for even prevention of disease or disorder in human beings or animals, and is manufactured exclusively in accordance with the formulae prescribed in the authoritative books, can be said to fall within the definition of a “drug” and once a common parlance test is applied, after noticing the ingredients, as noticed earlier, “Swad” cannot be said to be a toffee, and one takes the same in case of a stomach disorder or for digestion purposes. It can easily be observed that majority of the ailments begin with stomach and majority of the illness emanates from stomach disorder and by & large, any human being to keep his stomach in a proper manner or condition, even for digestion purposes, takes such tablet like “Swad”, which cannot be said to be a toffee or a candy. In my view, merely because it is available in a tea stall or a betel shop or other various places where confectionery items are sold, does not change the character of an item. There is no evidence on record or authoritative material put on record by the AO so that it can be said to be a confectionery item and not a drug. The burden was on the Assessing Officer if according to the AO it was a confectionery item, and it did not lead any evidence or produced any material or evidence to discharge the onus. The Tax Board is just and proper and has rightly held that it is a Ayurvedic medicine with the rate applicable of 6% - petition dismissed - decided against the Revenue and in favor of the assessee.
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