Himani Navaratan Oil, Himani Gold Turmeric Ayurvedic Cream Are Ayurvedic Medicine ; Telangana High Court

The Telangana High Court observed that 10% duty is leviable on Himani Navaratan oil and Himani Gold Turmeric Ayurvedic Cream as they are classified as ayurvedic medicines and not cosmetics. A bench of Justice P.Sam Koshy and Justice N.Tukaramji observed which the rapper in which the cream is sold emphasizes as an ayurvedic medicine. The rapper also clearly…

The Telangana High Court held that 10% duty can be levied on Himani Navaratan oil and Himani Gold Turmeric Ayurvedic Cream as they are classified as ayurvedic medicines and not cosmetics.

The bench of Justice P.Sam Koshy and Justice N. Tukaramji noted that the rapper in which the cream is being sold is highly emphasized as an ayurvedic medicine. The rapper also clearly shows that the cream is very effective for cracked skin, acne, pimples and many other skin lesions. Nowhere did the rapper say it was a cosmetic product or a product that would improve skin or unfairness. The licensing authority has issued a license for the product as an ayurvedic drug, the manufacture,​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​a .

The petitioner has filed eleven tax revision cases, challenging the common order passed by the Sales Tax Appellate Tribunal, Hyderabad (STAT). The whole controversy surrounding the six products being manufactured and sold is the suspicion of the two daughters. The products are Navaratan Oil, Gold Turmeric Ayurvedic Cream, Nirog Dant Power Lal, Boroplus Antiseptic Cream, Boroplus Prickly Heat Powder, and Sonachandi Chavanprash.

STAT has held Navaratan Oil, Gold Turmeric Ayurvedic Cream, and Nirog Dant Power Lal to be cosmetic or toilet products, which are challenged by the petitioner.

The issue raised is whether the products will fall under Entry 36 or Entry 37 of the CGST Act and TGST Act. If the products fall under cosmetic categories, then they become taxable for GST at the rate of 20%. On the other hand, if the products are to be treated as drugs in Entry 37, these products will be taxed at a rate of 10% only.

The appellant/appellant contended that, in respect of Himani Navaratan oil, the product is a medicinal product and is prescribed to keep the head cool, relieve the headache, provide sound sleep, provide effective relief of memory, to strengthen the body. muscles, relieves fatigue, is good for minor burns and wounds, and prevents premature hair loss. None of the actions mentioned on the product label correspond to the description of a cosmetic product or a toilet product.

The examiner argued that even the license of the product was found to be an ayurvedic product approved by the Drug Controller after analyzing its composition for the purpose of treating headache, reducing burning, improving circulation of blood, and improve hair growth. It is an ayurvedic product and not a scented hair oil with medicinal value. All the ingredients and ingredients used to make the product are found in Ayurvedic texts.

The court, while allowing the tax assessment, considered that the findings given by the STAT holding that the product to be brought under Entry 36 of the 1st Schedule of the Act does not appear to be correct, legal and it is correct.

Counsel for the applicant: Lakshmi Kumaran

Counsel for Respondent: Swaroop Oorilla

Case Title: State of Andhra Pradesh and Others Vs M/s.Himani Limited and others.

Case Number: Tax Assessment Case Nos.155, 156, 166, 169, 182, 183, 187, 188, 192, 193 And 211 Of 2004

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