State of M.P. v. Vicco Products (Bombay) - [2018] 91 taxmann.com 116 (Madhya Pradesh)
The assessee claimed that the products 'Vicco Vajradanti tooth paste and powder' and 'Vicco Turmeric cream' were drugs and medicines. Such products were covered under Entry No. 16 of Part IV of Schedule II of the Madhya Pradesh General Sales Tax Act, 1958 and were liable to tax at the rate of 4%.
The department held that the products 'Vicco Vajradanti tooth paste and powder' were toiletries. Such products were covered under Entry No. 2 of Part III of Schedule II of the Act and were liable to tax at the rate of 12%. The product 'Vicco Turmeric cream' was ‘Cosmetics’. Such product was covered under Entry No. 21 of Part II of Schedule II of the Act and was liable to tax at the rate of 16%. The Single Judge of the High Court allowed the appeal in favour of assessee. The revenue filed an appeal in the High Court.
The High Court held that product 'Vicco Vajradanti tooth paste and powder' were toiletries. Such product was covered under Entry No. 2 of Part III of Schedule II of Act and was taxable at the rate of 12%. The product 'Vicco Turmeric cream' was ‘Cosmetics’. Such product was covered under Entry No. 21 of Part II of Schedule II of the Act and was taxable at the rate of 16%. Therefore, the order passed by Single Bench was to be set aside
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