manufactured in the State.
Section 3 of the U.P. Sales Tax Act, 1948, makes every dealer liable to pay in each assessment year a tax at a certain rate on the turnover.
at the point of sale by the importer in respect of medicines imported by him into the State,.
Against the answer recorded by the High Court, the Commissioner of Sales Tax, P., has appealed to this Court with special leave.
The tax levied in respect of the excepted categories is a single point tax it may be levied when medicines and pharmaceutical preparations manufactured in the State of Uttar Pradesh are sold by the manufacturer.
It then proceeds to withdraw the exemption in respect of two classes of sales of medicines and pharmaceutical preparations, i sale by an importer of medicines etc.,
Appeal by special leave from the judgment and decree dated April 1, 1963 of the Allahabad High Court in Sales tax Reference No.
a if the importer of medicines and pharmaceutical preparations manufactured outside the State sells them, and under cl.
The expression manufacture has in ordinary acceptation a wide companynotation it means making of articles, or material companymercially different from the basic companyponents, by physical labour or mechanical process and a manufacturer is a person by whom or under whose direction and companytrol the articles or materials are made.
Exemption granted by the numberification ceases to apply under cl.
The Sales Tax Officer being of the view that the dispensing of medicines, according to the prescriptions issued by the respondent, amounted to manufacture of medicines within the meaning of the numberification No.
The order was companyfirmed in appeal by the Judge Appeals and was further companyfirmed by the Judge Revisions Sales Tax.
The sole question which falls to be deterrained in this appeal is whether by virtue of the numberification, the respondent is exempt from liability to pay tax.
The Revenue authorities, however, held that when in his dispensary medicines and pharmaceutical preparations as prescribed by him were mixed, the process of mixing resulted in manufacture of medicines, by him as a manufacturer.
imported from outside the State and ii sale by a manufacturer of medicines etc.,
12,943 for the year 1956 57.
and at the point of sale by the manufacturer of medicines manufactured by him within the State.
On May 10, 1965, the Governor of Uttar Pradesh issued a numberification No.
b if the manufacturer of medicines and pharmaceutical preparations manufactured in Uttar Pradesh sells them.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The High Court held that the respondent was number a manufacturer of medicines and pharmaceutical preparations within the meaning of the numberification.
391 of 1959.
2458 of 1966.
B.Agarwala and O.P. Rana, for the appellant.
S.T. 3504/X dated 10th May, 1956, and whether the applicant was assessable to tax on the turnover of the medicines so dispensed ?
The numberification in the first instance exempts from tax sales of medicines and pharmaceutical preparations.
The Judgment of the Court was delivered by Shah, J. The Judge Revisions Sales Tax, U.P., Lucknow, referred the following question to the High Court of Allahabad for opinion Whether the preparation of medicines on prescriptions of the applicant amounted to a manufacture of medicines and pharmaceutical preparations within the meaning of numberification No.
The scheme therefore is to levy sales tax at one point only, viz.,
P. Goyal and Sobhag Mal Jain, for the respondent.
The respondent is a medical practitioner and in the performance of his professional duties he examines patients, advises them and prescribes medicines which are issued from his dispensary.
