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2000 (12) TMI 276 - SC - VAT and Sales TaxWhether this type of classification which differentiates medicinal preparations based on the content of alcohol in such preparations is a valid classification or not? Held that:- So far as the Assam Act is concerned, unlike the Tamil Nadu General Sales Tax Act, 1959, it identified the medicinal preparations containing more than 12% alcohol as a separate class vis-a-vis such preparations either not containing alcohol or containing less than 12% alcohol. This difference distinguishes the basis of the judgment of this Court in Ayurveda Pharmacy’s case (1989 (3) TMI 187 - SUPREME COURT OF INDIA) inasmuch as the Assam Act does not identify the medicinal preparations containing more than 12% alcohol as being the same as other medicinal preparations not containing alcohol. On the contrary, as could be seen these types of spirituous medicinal preparations which contained 12% alcohol have been separately classified for the levy of tax under Item 67 of the Schedule to the Act. We are of the considered view that the classification founded in the impugned Act in regard to the medicinal preparations based on the strength of alcohol contents in the same, cannot be said to be arbitrary and violative of Article 14 as held by the High Court in its impugned judgment. For the reasons stated above, these appeals succeed, the impugned judgments of the High Court are set aside and the writ petitions filed by the respondents before the High Court stand dismissed.
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