Document Fragment View

Matching Fragments

7. In the meanwhile, the writ petition has been filed by the petitioner challenging the levy of entry tax on "Mediker" and "Starch" treating it as chemical on the ground that it is not chemical and that its entry into local area is not for sale.

8. The Division Bench of this Court vide order dated 19.08.2013 (Annexure- P/8) decided the matter in the matter of Marico Industries Ltd. vs. State of Madhya Pradesh & others reported in 2013 (23) STJ 415 (MP), held that "Mediker" and "Starch" having not been classified under the Entry Tax Act, 1976 nor it is covered under Schedules I and II of the said Act and the aforesaid W. P. No.21702/2017 & others articles are not taxable goods under the statute, then the provisions of the Entry Tax Act cannot be attracted and allowed the writ petition by quashing Annexure-P/1 and Annexure-P/2.

9. The State challenged the said order by filing special leave petition before the Apex Court.

10. The Apex Court in the matter of State of M.P. & others vs. Marico Industries Ltd. reported in 2016 (13) STD 242 dismissed the civil appeal of the State by holding the following :-

16. The aforesaid analysis makes it absolutely clear that Mediker which is used for anti-lice treatment is a drug because of its medicinal affect. This position has been accepted by this Court.

Once it is a drug, it cannot be a shampoo. As a natural corollary, it will not invite the liability of levy of entry tax.

12. In view of the law laid down by the M. P. High Court in the case of Marico Industries Ltd. vs. State of Madhya Pradesh & others (supra), the rectification application was filed on the ground that the order dated 06.10.2015 passed by the Appellate Board suffers from serious error apparent on the face of the record, prayed that the order passed by the Board be recalled for re- examining the question on the basis of the test laid down in the decision of the Apex Court or follow the decision of the Apex Court or High Court.

17. Going through the definition of cosmetic and comparing it with the composition of Mediker as a shampoo, one cannot deny that Mediker is special kind of shampoo with Phenothrin for killing of hair lice. Shampoo is a hair care product, typically in the form of a viscous liquid, to clear hair. Shampoo is used by applying it to wet hair, massaging the same into the hair, and then rinsing it out. A Shampoo is generality made by combining a surfactant, most often sodium lauryl sulfate or sodium laureate sulfate, with a co-surfactant, most often cocamidonpopropyl butane in water. Special purpose shampoos are available for people with dandruff, color treated hair, gluten or wheat allergies, an interest in using an "all natural", "organic", "botanical" or "plant-derive" product, and infants and young children ("baby shampoo" is less irritating). There are also shampoos intended for animals that may contain insecticides or other medications for treatment of skin conditions or parasite infestations such as fleas. In the Marico case (supra) it was held that the Mediker was basically medical product but it is used as shampoo and since it is used in the toilet, it is also a toilet good.