Parke Davis Pty Ltd v Commissioner of Taxation & Anor [1996] FCA 764

Parke Davis Pty Ltd v Commissioner of Taxation & Anor [1996] FCA 764

Listerine Antiseptic Mouthwash qualifies as a drug or medicine used in the prevention, cure, or treatment of sickness or disease in human beings and is not a toilet preparation or a good in the nature of a toilet preparation. Accordingly, it is exempt from sales tax under Item 38 of Schedule 1 to the Sales Tax (Exemptions & Classifications) Act 1935 (Cth).

Parties
Applicant: Parke Davis Pty Ltd; First Respondent: Commissioner of Taxation; Second Respondent: Commonwealth of Australia
Jurisdiction
Australia
Judgment Date
30 August 1996
Procedural Posture
Application for Declaration / Final Judgment
Outcome
Application allowed
Legal Topics
Sales Tax Exemption, Definition of Drug or Medicine, Toilet Preparations, Therapeutic Goods
Taxation Law Sales Tax Exemption Definition of Drug or Medicine Toilet Preparations Therapeutic Goods

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Parties

Parke Davis Pty Ltd

Applicant

Commissioner of Taxation

First Respondent

Commonwealth of Australia

Second Respondent

Procedural Posture

Application for Declaration / Final Judgment

Legal Issues

  1. 1 Whether Listerine Antiseptic Mouthwash is a drug or medicine under Item 38 of Schedule 1 to the Sales Tax (Exemptions & Classifications) Act 1935 (Cth)
  2. 2 Whether Listerine is used in prevention, care or treatment of sickness or disease
  3. 3 Whether Listerine is a toilet preparation or a good in the nature of a toilet preparation

Ratio Decidendi

Listerine Antiseptic Mouthwash qualifies as a drug or medicine used in the prevention, cure, or treatment of sickness or disease in human beings and is not a toilet preparation or a good in the nature of a toilet preparation. Accordingly, it is exempt from sales tax under Item 38 of Schedule 1 to the Sales Tax (Exemptions & Classifications) Act 1935 (Cth).

Court Disposition

Application allowed

Orders

  • Declaration that Listerine Antiseptic Mouthwash is exempt from sales tax under Item 38 of Schedule 1 to the Sales Tax (Exemptions & Classifications) Act 1935 (Cth).
  • Respondent to pay the costs of the application.