The appellants companytend that Arishta ms and Asavas manufactured by them are essentially Ayurved ic medicines, and that in any event the object of companytrolli ng the companysumption of liquor is amply served by several oth er existing statutes, including the Medicinal and Toilet Prep a rations Excise Duty Act, 1955, Drugs and Cosmetic Ac t, 1940, as amended in the year 1964, and Spirituous Prepar a tions Inter State Trade and Commerce Control Act, 1955.
301 was companytravened and refused to acce pt that there was any ulterior object in imposing a high ra te of tax on those two companymodities.
From the companynter affidavit filed by the Government of Tamil Nadu in the writ petition, out of which one of t he present appeals arises, it appears that the higher levy of sales tax on Arishtams and Asavas was introduced by t he State Legislature to curb the abuse of medicinal prepar a tions for their alcoholic companytent by drink addicts and to eliminate the mushroom growth of Ayurvedic Pharmacies pr e paring sub standard Arishtams and Asavas for purposes oth er than medicinal use.
The appellants filed writ petitions in the High Court of Madras challenging the levy of 30 on Arishtams and Asava s, but on 2 September, 1974 the High Court dismissed the wr it petitions.
95 a nd subjected to tax at 7.
While dismissing the writ petitions the High Cou rt observed that the imposition of the rate of 30 on the sa le of Arishtams and Asavas must be regarded principally as measure for raising revenue, and it repelled the argume nt that the rate of tax was discriminatory or that Ar t. 19 1 g was infringed.
From the Judgment and order dated 2.9.1974 of the Madr as High Court in Writ Petition No.
It rejected the plea of the appe l lants that Art.
Th ey were shown as attracting a rate of 30 while all oth er medicinal preparations were shown under item No.
23 of 1974 in the First Schedule as it em 135 dealing specifically with Arishtams and Asavas.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1868 of 1974.
2729/1974.
The appellants in these two appeals a re manufacturers of Ayurvedic drugs and medicines, includi ng Arishtams and Asavas.
Arishtams and Asavas companytain alcoho l, and it is said that the presence of alcohol is essential f or the effective and easy absorption of the medicine by t he human system and also because it acts as a preservative.
The Judgment of the Court was delivered by PATHAK, CJ.
While all other patent or propri e tary medicinal preparations belonging to the differe nt systems of medicines were taxed at the rate of 7 onl y, Arishtams prepared under the Ayurvedic system were ma de subject to a levy of 30.
S. Nanman, C.S. Vaidyanathan and K.R. Nambiar for t he Appellants.
By a numberification dated 4 March, 1974, the State of Tamil Nadu included a large number of items in the Fir st Schedule to the aforesaid Act in order to make them subje ct to a single point levy.
A ll the Ayurvedic preparations as well as Allopathic, Siddha a nd Unani medicines were originally subject to a multi poi nt levy of 31/2 under the Tamil Nadu General Sales Tax Ac t, 1959.
S. Krishnamoorthy Iyer, A.V. Rangam and T.V. Ratn am for the Respondent.
Balakrishnan number present for the Intervener.
