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2009 (10) TMI 854

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..... ix per cent under Notification No. 1912 dated June 1, 1994 despite panjon or its formulation are not specified under Schedule First or Second to the Drug (Prices Control) Order, 1987?" The applicant was dealing in sugar candy, confectionery, plastic goods, chewing gum, panjon, etc. The dealer has admitted the liability of tax on the sale of panjon at the rate of six per cent plus surcharge under Notification No. ST-2-1912/IX dated June 1, 1994. Treating it as a bulk drug the assessing authority has not accepted the plea of the dealer and has assessed panjon at the rate of eight per cent plus surcharge. Being aggrieved by the order, the dealer filed an appeal before the Deputy Commissioner (Appeals), Trade Tax, Ghaziabad. The Deputy Commis .....

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..... ations of the Third Schedule. He submitted that what is necessary is that the other drugs should be bulk drugs, not necessarily fall under the Second Schedule. He submitted that acetyl salicylic acid is a chemical name of aspirin. Aspirin is a bulk drug specified in the Second Schedule. Paracetamol is also specified in the Second Schedule. Caffeine anhydrous, though not specified in the Second Schedule, is a bulk drug, as defined under the Drug (Prices Control) Order, 1987. He referred the definition of "bulk drug" as defined in para 2(a) of the order, which says "'bulk drug' means any substance including pharmaceutical, chemical, biological or plant product or medicinal gas conforming to pharmacopoeial or other standards accepted u .....

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..... f sub-section (1) of section 3A read with section 25 of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948), and section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor is pleased to make, with effect from May 1, 1994, the following amendment in Government Notification No. ST-2-5785/X-10(1)-80 - U.P. Act-15/48 - Order-81, dated September 7, 1981, as amended from time to time: AMENDMENT In the list to the aforesaid notification, for the entries at the serial No. 29, the following entries shall be substituted columnwise, namely: S. No. Description of goods Point of tax Rate of tax 1 2 3 4 29 (a) (i) Bulk drugs specified as on 31st March, 1994 in the First and Second Schedules to .....

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..... rmulations All formulations based on the bulk drugs specified under the First Schedule either individually or in combination with other bulk drugs. 2.. Category II Formulations All formulations based on bulk drugs specified in the Second Schedule either individually or in combination with other bulk drugs except the following: (i) Single ingredient formulations based on the bulk drugs specified in the Second Schedule and sold under generic name. (ii) All single ingredient vitamin formulations containing individual vitamins specified in the Second Schedule, sold either in brand name or in generic name, except the single ingredient vitamin formulations based on the bulk drugs vitamin A and vitamin C sold in brand name.   (The above .....

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..... gs specified in the Second Schedule. Caffeine anhydrous, admittedly, is not mentioned in the Second Schedule. It may be drugs but it cannot be treated as bulk drugs for the purposes of the notification unless it is specified in the Second Schedule. In view of the above, I am of the view that panjon is not a formulation of the bulk drugs specified in the Second Schedule and, therefore, does not fall within the category of formulations specified as on March 31, 1994 in the Third Schedule under the Drugs (Prices Control) Order, 1987 and falls only under the residuary entry not included in item (a) above and liable to tax at the rate of eight per cent plus surcharge. The Tribunal has committed an error in levying the tax at the rate of six per .....

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