{"id":293692,"date":"2023-06-02T18:00:58","date_gmt":"2023-06-02T12:30:58","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=293692"},"modified":"2023-06-20T17:48:21","modified_gmt":"2023-06-20T12:18:21","slug":"heinz-india-verdict-the-subtleties-segregating-medicaments-and-cosmetics","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/02\/heinz-india-verdict-the-subtleties-segregating-medicaments-and-cosmetics\/","title":{"rendered":"Heinz India Verdict \u2013 The Subtleties Segregating Medicaments and Cosmetics"},"content":{"rendered":"
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P<\/span>artaking in the pressing discussion regarding the classification of products as medicaments or cosmetics, the Supreme Court has ruled that \u201cNycil Prickly Heat Powder\u201d is appropriately classifiable as medicated talcum powder and not as a medicament itself. This issue stems from the enactments under the General Sales Tax Acts of the States of Kerala and Tamil Nadu, respectively. These enactments embody inclusive entries that can be interpreted to engulf talcum powders under the ambit of cosmetics, even if these are medicated.<\/p>\n

In this case, Nycil, a product which is inter alia composed of medicinal ingredients viz. chlorphenesin, zinc oxide and boric acid, was taken out of the purview of medicaments, despite being used for the specific purpose of treating prickly heat and other fungicidal skin infections. The rationale behind this judgment is based on the fact that the respective State General Sales Tax Acts contained entries which specifically included medicated talcum powder in the rubric of cosmetics.<\/p>\n

This judgment does not consider the essential principles which have evolved over time through various decisions in the Indian jurisprudence, which lay down the touchstones that aid in the classification of products having both medicinal and cosmetic properties. However, it bore more significance on the specific and inclusive language of the entries in the statutes.<\/p>\n

Consequently, this ruling poses a larger question regarding its applicability in the GST regime, where such classification issues have become permeative.<\/p>\n

It may be noted that the principles regarding classification of a product as a medicament have evolved over the course of time in the erstwhile tax regime (central excise law) through several judicial precedents. These judicial precedents have scrutinised the complex language of general explanatory notes which explain the scope of medicaments and cosmetics and have thereby concluded similar products as medicaments under the central excise law.<\/p>\n

Some of the principles laid down by court which are relevant to classify the product as medicament are as follows:<\/p>\n