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1958 (10) TMI 31

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..... ales Tax, Bihar, rejected the revision petitions. 5.. The assessee then moved the Board of Revenue, Bihar, in second revision. The revision petitions (Exhibits F and F1) are enclosed. For reasons explained in its order dated the 30th April, 1956, (Exhibit G) the Board rejected those petitions. 6.. Being dissatisfied with the said order, the assessee filed two applications (Exhibits H and H1) before the Board for making reference to the High Court on certain questions of law as set forth in these applications. 7.. After due hearing, the Board for reasons set forth in the order dated the 11th April, 1957 (Exhibit 1), refers the following question of law for the decision of the High Court: "Whether having regard to the prescribed ingredients for the preparation of Mritasanjibani Sura, it should be regarded as a country liquor exempt from tax under item No. 10 of Notification No. STGL60/51-4280-F.T. dated 2nd April, 1951". RESOLUTION OF THE BOARD DATED 11TH APRIL, 1957. These are two applications for reference to the High Court on certain points of law said to arise from the order of the Board in cases Nos. 321 and 322 of 1955. The only question that really arises from the order .....

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..... f manufacturing and selling Ayurvedic medicines under the name and style of "Sadhana Ausadhalaya". In Miscellaneous Judicial Case No. 388 of 1957, the assessment of sales tax upon the petitioner is for the periods 1952-53 and 1953-54. He was assessed on a total taxable turnover of Rs. 1,92,878 in 1952-53 and of Rs. 1,93,626 in 1953-54. He claimed a deduction of Rs. 36,180-8-0 in the first year and Rs. 39,929 in the second year on account of sale of Mritasanjibani Sura. His claim was founded upon Notification No. STGL-60/51-4280 F.T. dated 2nd April, 1951, by which, in exercise of the powers conferred by section 6 of the Bihar Sales Tax Act, 1947 (Bihar Act XIX of 1947), the Governor of Bihar was pleased to direct that the goods mentioned therein will be exempt from payment of sales tax subject to the conditions and exceptions, if any, set out in the corresponding entry in the third column thereof. One of the goods exempted from sales tax is country liquor, as mentioned in item 10 of the said notification. The assessee raised an objection before the Sales Tax Officer, before the Assistant Commissioner of Sales Tax, before the Deputy Commissioner of Commercial Taxes under section 2 .....

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..... t April, 1951. Item 10 of this notification is relevant for the present purpose and is in the following terms: "Country liquor including toddy and pachwai but excluding potable foreign liquor, and medicated wine; ganja, bhang, excise opium excluding preparations of opium, bhang and charas". It is evident that what is exempted from sales tax under item 10 is country liquor, including toddy and pachwai; but potable foreign liquor and medicated wine are not exempted from sales tax. In other words, sales tax may be imposed upon medicated wine under the Bihar Sales Tax Act. The question, therefore, boils down to this: Whether Mritasanjibani Sura is a medicated wine? In the opinion of the Sales Tax Authorities it is a medicated wine and not a country liquor. On the other hand, Mr. Das strenuously urged that it was not a medicated wine, but a country liquor. There is no dispute that if Mritasanjibani Sura is a country liquor, then certainly it will be exempt from sales tax by virtue of the aforesaid notification. The opposing view-points pressed before us were taken before the Deputy Commissioner, Sales Tax, also, and in a very good and well-considered judgment dated 15th October, 1955, h .....

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..... inction, in my opinion, has to be drawn between medicinal preparations containing alcohol or narcotic drugs and alcohol containing medicinal properties. The fact that Mritasanjibani Sura is not taxed by the Union as a medicinal preparation containing alcohol but on the other hand is taxed at the rate applicable to country liquor by the State does not necessarily show that it is not a medicated wine." By its order dated 30th April, 1956, the Board of Revenue affirmed not only the conclusion reached by the Deputy Commissioner of Sales Tax but also the reasons given by him. The ingredients of Mritasanjibani Sura and the method of its preparation, as stated by the Deputy Commissioner, were not questioned by learned counsel for the petitioner. The contention of Mr. Das is that the different herbs which enter into the composition of Mritasanjibani Sura are not the correct criteria for judging whether it is a country liquor or a medicated wine. He laid great stress upon the quantity of molasses used for preparation of Mritasanjibani Sura. According to the Ayurvedic Sangraha by Principal Gananath Sen, the quantity of molasses used is 12 1/2 seers as against small quantities of different ra .....

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..... ic beverage. Apart from this, we cannot ignore the hard fact that Mritasanjibani Sura has never been treated as ordinary liquor and sold by ordinary liquor vendors. It is stocked and sold by Ayurvedic Ausadhalayas. If we take the ordinary dictionary meaning of the word "medicated", it means "impregnate with anything medicinal". The herbs that are used for the preparation of Mritasanjibani Sura possess medicinal properties, even on the authority quoted by the assessee himself before the Deputy Commissioner, and in effect, Mritasanjibani Sura increases strength, appetite, vigour and retentivity. It is invigorating and can be administered in various complaints. Therefore having regard to the essential ingredients of Mritasanjibani Sura, the method of its preparation and the effect it produces, there is no escape from the conclusion that it is a medicated wine and not a country liquor, as commonly understood. Accordingly, it is not exempt from sales tax. For these reasons I hold that in the circumstances of this case the assessment of sales tax upon the assessee for both the periods, namely, 1952-53 and 1953-54, is legally valid. Accordingly, the questions referred to by the Board of R .....

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