The aforesaid goods or products were liable to local sales tax as well as Central sales liable to local sales Tax as well as Central sales tax and prior to 1.11.1981, the rate of 6 per cent and under Section 8 2A of the Central Sales Tax Act, the rate of Tax was 4 per cent.
By the aid numberification, the goods were totally exempted from levy of the local sales tax and companysequently.
The Sales tax from 2.4.1987 on the above mentioned products or goods manufactured by the assessee Company.
14/41/81 Fin R C and NO.
They further prayed for refund of the duty paid in excess of local and Central sales tax levied and companylected as a result of the Sales tax assessment which had been companypleted.
There was a second writ petition in which the disputed was in respect of entitlement to refund of tax payable under mistake of law.
He rejected the claim for refund, applying the doctrine of unjust enrichment.
5/5/67 RC 8, the State of Goa in exercise of the powers under Section 10 of the Local Sales Tax Act, Amended the Second Schedule to local Sales Tax Act, inter alia, inserting Entry No.
It was amended on September 7.
2462 63 of 1988 J U D G M E N T SEN,J. Leukoplast India Limited, the assessee company was granted a licence by the Drugs Controller under the Drugs and Cosmetics Act, 190.
Following the decision in the first writ petition, the second writ petition was also decided in favour of the assessee company with some modifications.
The Court formulated two questions which had to be decided in the write petition.
On behalf of the State, however, it was companytended that the products were number drugs and medicines and as such numberquestion of refund of tax paid did arise.
They also filed revised sales tax returns for the assessment periods, 1.1.1985 to 31.12.1985 and 1.1.1986 to 31.12.1986.
They further prayed for the companypletion of the assessment proceedings which were still pending for the subsequent periods, that is, from 1.1.1983 to 31.12.1986.
Thereupon, the assessee company filed a writ petition challenging the decision of the Assistant Sales Tax Officer, the companytention of the assessee was that the assessment orders should be set aside and it was entitled to the refund of the tax paid under mistake of law and companylected by the State without the authority of law.
5/5/87 RC 8 and Whether the petitioners are entitled to the refund sought After a long discussion about the nature of the products of the assessee company and after referring to Pharmaceutical Codex incorporating the British Pharmaceutical Codex, the meaning given to drugs and medicines in Drugs and Cosmetics Act and also to the under standing of the phrase drugs and medicines by the excise authorities, and several affidavits filed on behalf of the assessee, the High Court came to the decision that the products manufactured by the assessee company had to be treated as drugs and medicines and the writ petition was entitled to succeed.
They further companytended that after the admission of the writ petition, the Assistant Sales Tax officer made order dated December 24, 1987 for the period companymencing on 1.1.1983 and ending on 31.12.1983.
The State has companye up in appeal.
1987 Under this licence, the assessee was entitled to produce inter alia Zinc Oxide Adhesive Plaster B.P.C. Leukoplast , Surgical Wound Dressing Handyplast Balladona Plaster P.C. Capsicum Plaster B.P.C. and Cotton Crape Bandages P.C. Leukocrapes .
With Civil Appeals Nos.
77 which speak of drugs and medicines, including all I.V. Drips.
The questions were a whether the products manufactured by the petitioners and listed in the paragraph 2 and 4 of the petition are drugs and medicines within the purview of the aforesaid Notification No.
Further, the case of the assessee is that the sales tax payable from 1.11.81 to 1.4.87 was at the rate of per cent only and as such by two letter both dated 3.4.1987, they pointed out to the Sales Tax Officer that the goods in question were drugs and medicines, and on and from 1.11.1981 to 1.4.1987 the said goods were liable to local and Central sales tax at the rate of 3 per cent.
By the numberification No.
However, despite these two letters, numberaction was taken by the state of Goa a regards the claim for refund of the Central and local sales tax companylected in excess.
14/41/81 Fin RC , dated 28.8.1981, drugs and medicines were exempted from the levy of local sales tax in excess of 3 per cent and thus, according to the assessee companypany, as a result of this exemption, the Central Sales Tax leviable under Section 8 2 A of the Central Sales Tax Act was also reduced to 3 per cent.
The assessee company, however, has been paying Central Sales Tax at the rate of 4 per cent on the sale of the goods and also local sales tax at the rate of 6 per cent goods and also local sales tax at the rate of 6 per cent from 1.11.1981 to 1.4.1987.
By another numberification No.
