ADHYAKSHA MATHUR BABU'S SAKTI OUSHADHALAYA DACCA (P) LTD. AND OTHERS versus UNION OF INDIA

ADHYAKSHA MATHUR BABU'S SAKTI OUSHADHALAYA DACCA (P) LTD. AND OTHERS versus UNION OF INDIA

Ayurvedic preparations Mritasanjibani, Mritasanjibani Sudha, and Mritasanjibani Sura, as manufactured by the petitioners, are medicinal preparations within the meaning of s.2(g) of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, being prepared according to standard Ayurvedic texts, and are therefore liable only to central excise duty under the Act and not to state excise duty under the various State Acts, irrespective of their omission from the Schedule to the Rules.

Parties
Petitioners: Adhyaksha Mathur Babu's Sakti Oushadhalaya Dacca (P) Ltd. and Others; Respondent: Union of India
Jurisdiction
India
Judgment Date
07 September 1962
Procedural Posture
Petitions Under Article 32 of the Constitution of India for Enforcement of Fundamental Rights / Supreme Court Decision on Merits
Outcome
Petitions allowed
Legal Topics
Excise Duty, Ayurvedic Medicines, Medico Legal Definitions, Union State Legislative Powers, Interpretation of Central and State Excise Laws
Constitutional Law Tax and Excise Law Excise Duty Ayurvedic Medicines Medico Legal Definitions Union State Legislative Powers Interpretation of Central and State Excise Laws

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Parties

Adhyaksha Mathur Babu's Sakti Oushadhalaya Dacca (P) Ltd. and Others

Petitioners

Union of India

Respondent

Procedural Posture

Petitions Under Article 32 of the Constitution of India for Enforcement of Fundamental Rights / Supreme Court Decision on Merits

Legal Issues

  1. 1 Whether the State Governments were entitled to levy excise duty on Ayurvedic preparations Mritasanjibani, Mritasanjibani Sudha and Mritasanjibani Sura under State Excise Acts after the coming into force of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955?
  2. 2 Whether these preparations are 'medicinal preparations' under s.2(g) of the 1955 Act or mere alcoholic beverages?
  3. 3 Whether omission of these preparations from the Schedule to the Rules under the 1955 Act empowered the States to impose excise duty under their own Excise Acts?

Ratio Decidendi

Ayurvedic preparations Mritasanjibani, Mritasanjibani Sudha, and Mritasanjibani Sura, as manufactured by the petitioners, are medicinal preparations within the meaning of s.2(g) of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, being prepared according to standard Ayurvedic texts, and are therefore liable only to central excise duty under the Act and not to state excise duty under the various State Acts, irrespective of their omission from the Schedule to the Rules.

Court Disposition

Petitions allowed

Orders

  • State Governments are restrained from levying excise duty on the three preparations under State Excise Acts; only central excise under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 is to be levied.
  • No order is passed concerning refund; petitioners may pursue this with State Governments as per law.