DABUR INDIA LTD. AND ANR. versus STATE OF UTTAR PRADESH AND ORS.

DABUR INDIA LTD. AND ANR. versus STATE OF UTTAR PRADESH AND ORS.

Homeodent tooth paste is a homeopathic preparation as well as a toilet preparation; since it contains alcohol via mother tincture, it is liable to excise duty under the Medicinal & Toilet Preparations (Excise Duties) Act, 1955, as determined by the authorities. Refund applications for duty paid under the 1944 Act should be entertained by the Central Government, with the limitation period under section 11B of the 1944 Act waived for this case; administrative machinery under Article 263 should be considered to settle similar disputes between State and Central authorities.

Parties
Petitioner: Dabur India Limited; Petitioner: Sharda Boiron Laboratories Ltd.; Respondent: State of Uttar Pradesh; Respondent: Central Government
Jurisdiction
India
Judgment Date
12 July 1990
Procedural Posture
Writ Petition (civil) and Special Leave Petition (civil) / Supreme Court Final Decision
Outcome
Petitions dismissed, impugned excise order upheld, refund applications permitted subject to directions.
Legal Topics
Classification of Goods, Excise Duty, Overlapping Taxation, Refund of Excise Duty, Principles of Natural Justice
Excise Law Classification of Goods Excise Duty Overlapping Taxation Refund of Excise Duty Principles of Natural Justice

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Parties

Dabur India Limited

Petitioner

Sharda Boiron Laboratories Ltd.

Petitioner

State of Uttar Pradesh

Respondent

Central Government

Respondent

Procedural Posture

Writ Petition (civil) and Special Leave Petition (civil) / Supreme Court Final Decision

Legal Issues

  1. 1 Whether 'Homeodent' tooth paste is a homeopathic medicine or toilet preparation
  2. 2 Whether 'Homeodent' is liable to excise duty under the 1955 Act or 1944 Act
  3. 3 Whether the presence of alcohol in 'Homeodent' attracts duty under the Medicinal & Toilet Preparations (Excise Duties) Act, 1955

Ratio Decidendi

Homeodent tooth paste is a homeopathic preparation as well as a toilet preparation; since it contains alcohol via mother tincture, it is liable to excise duty under the Medicinal & Toilet Preparations (Excise Duties) Act, 1955, as determined by the authorities. Refund applications for duty paid under the 1944 Act should be entertained by the Central Government, with the limitation period under section 11B of the 1944 Act waived for this case; administrative machinery under Article 263 should be considered to settle similar disputes between State and Central authorities.

Court Disposition

Petitions dismissed, impugned excise order upheld, refund applications permitted subject to directions.

Orders

  • District Excise Officer's order dated 18 January 1989 to be given effect.
  • If refund application made for duty paid under the 1944 Act, it must be considered by Central Government; limitation under section 11B not to apply for this case, application to be made within four months.