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TMI Blog1997 (2) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment of 1996, the item was substituted with effect from May 1, 1995 as under: "Drugs and medicines except those included in the goods specified elsewhere in this Schedule or in any other Schedule." 2.. The case of the applicant in RN-146 of 1996 is that she carries on business of resale of goods which are required for the purpose of treatment of patients in the trade name of M/s. Ashna Enterprises at New Delhi. She is not carrying any business of buying or selling goods in the State of West Bengal and is not therefore a dealer within the meaning of the West Bengal Sales Tax Act, 1994. The impugned consignment of 200 cartons of scalp vein needle sets which are used for injecting saline in human body were imported from China by sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a business of clearing, forwarding and transporting agency in partnership under the trade name of M/s. J.L. Goward & Co. at New Customs House, Calcutta. A consignment of 101 cartons of scalp vein needle sets were imported from China and it reached Calcutta port. The Inspector of Commercial Taxes at Calcutta port had released the said goods for transportation, but those were seized on April 19, 1996 when the same were under transportation. The ground of seizure was that those were specified goods under Act of 1994. It was not stated as to where the goods were so specified. Ultimately, a notice was issued for a proceeding for imposition of penalty. At that stage the application was filed by contending that the impugned goods do not come und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t A of Schedule IV of the Act of 1994 is not a referential legislation. According to them, no reference can, therefore, be made to the definitions in the said Act of 1940. They have also argued that in the absence of any definition given in the statute, the expression "drugs and medicines" should be construed according to trade parlance meaning. It is submitted that scalp vein needle sets are not understood as drugs or medicines in common or trade parlance. 7.. Mr. K.K. Saha, learned advocate for respondents, has submitted that although item 24(i) is not a referential legislation, it should be held that in trade parlance "drugs" and "medicines" include scalp vein needle sets which are used for the treatment of persons suffering from disea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, undisputedly scalp vein needle sets come under the definition of "drug" in section 3(b) of the Act of 1940. But there is no dispute that item 24(i) does not refer to that definition. There is no other definition in the Act of 1994. According to the settled principle, the item 24(i) must be construed according to the trade or common parlance meaning which means in the sense in which those who deal in the goods understand. Mr. Saha, on behalf of the respondents, has relied on a judgment of the High Court of Gujarat in State of Gujarat v. C.K. Gauze Bandage Manufacturing Company [1992] 84 STC 571. It is not necessary for us to deal with that judgment in great detail, because there are certain distinguishing features in that case. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me ailments or a narcotic or intoxicant or stimulant which is taken inside the human body for the desired purpose. It is rather too much to say that in common parlance drug includes an instruments like scalp vein needle sets by which liquid medicine or saline can be injected into human body. 12.. Accordingly, we hold that the impugned goods, namely, scalp vein needle sets are not drugs and hence do not fall within the item 24(i) of Part A of Schedule IV of Act of 1994 for the purpose of sales tax. Therefore, the Inspector of Commercial Taxes of Calcutta port check-post had rightly allowed the goods to be transported without production of sales tax permit. Hence the seizure of the goods in both the cases before us were wrongful and invalid. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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