HC : ‘Swad’ candy manufactured using prescribed formulae, taxable as ayurvedic medicine, not confectionery

HC holds ‘Swad’ candy as an ayurvedic medicine and not confectionary, thereby taxable at 6% under Rajasthan Sales Tax Act; Rejects Revenue contention that since ‘Swad’ candy is freely available at shops other that medical stores, it cannot be said to be a medicine and hence, taxable at 10%; States that any drug for prevention of disease or disorder in human beings or animals, and manufactured exclusively in accordance with the formulae prescribed in authoritative books, can be said to fall within the definition of a “drug”; Applying common parlance test and taking note of the ingredients, HC states that ‘Swad’ cannot be said to be a toffee, as one takes the same in case of a stomach disorder or for digestion purposes; States that “merely because it is available in a tea stall or a betel shop or other various places where confectionery items are sold, does not change the character of an item”, while noting that no evidence or authoritative material has been put on record by Revenue so that it can be said to be a confectionery item and not a drug : Rajasthan HC