| Case ID |
f96746ef-11ed-4ad4-828c-d786fac4a9eb |
| Body |
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| Case Number |
D-814 of 1988 |
| Decision Date |
Aug 12, 1990 |
| Hearing Date |
Jun 10, 1990 |
| Decision |
The Sindh High Court allowed the petition filed by Messrs Boots Company Pakistan Limited, declaring that the product 'Strepsils' is classified as a drug under the Drugs Act, 1976. The court found that the product is indeed a medicinal preparation and not a sugar confectionery, thus exempt from sales tax. The court quashed the Circular No. 8/81 and the order dated 28-7-1988, concluding that the imposition of sales tax on 'Strepsils' was unjustified. The decision emphasized the comprehensive definition of 'drug' and the medicinal use of 'Strepsils' as an antiseptic throat lozenge. The court ruled in favor of the petitioners, ensuring that no sales tax would be applicable on their product. |
| Summary |
In the case of Messrs Boots Company Pakistan Limited vs. Central Board of Revenue, the Sindh High Court addressed the classification of 'Strepsils' lozenges under the Drugs Act, 1976, and the imposition of sales tax on pharmaceutical products. The court examined the definition of 'drug' which encompasses substances used for treatment, prevention, or diagnosis of diseases in humans or animals. The petitioners argued that 'Strepsils', an antiseptic throat lozenge, was duly registered as a drug and should not be considered a confectionery for tax purposes. The court agreed, stating that the product was intended for medicinal use and was exempt from sales tax. This case highlights the importance of proper classification of pharmaceutical products and the legal protections afforded to registered drugs under relevant legislation. The ruling not only quashed the previous orders imposing tax but also reinforced the regulatory framework governing the pharmaceutical industry in Pakistan. |
| Court |
Sindh High Court
|
| Entities Involved |
CENTRAL BOARD OF REVENUE,
Messrs BOOTS COMPANY PAKISTAN LIMITED
|
| Judges |
SYED HAIDERALI PIRZADA,
HAUQUL AHAUI
|
| Lawyers |
Anwar Mansoor Khan,
Zaheer-ud-Din Khan
|
| Petitioners |
Messrs BOOTS COMPANY PAKISTAN LIMITED
|
| Respondents |
3 others,
CENTRAL BOARD OF REVENUE
|
| Citations |
1994 SLD 271 = 1994 CLC 1144
|
| Other Citations |
Not available
|
| Laws Involved |
Drugs Act, 1976,
Central Excise Rules, 1944,
Customs Act, 1969
|
| Sections |
3,
10,
First Schedule
|