MUMBAI: The Supreme Court has held that medicated talcum powder Nycil which is used to treat prickly heat, is a cosmetic and not a ‘medicament, reports Lubna Kably. As cosmetics are taxed at a higher rate- both under the earlier indirect tax laws and current GST provisions-this means that the ultimate consumer will pay a higher price.
This verdict comes a day after the Supreme Court passed a favourable ruling in the case of medicated homeopathic hair oil. Here, the SC had held that Aswini Homeo Arnica Hair Oil fits the corners of the twin test perfectly which is both the common parlance test and ingredients test. The apex court in this order, reported by TOI on May 5 had also pointed out that another essential feature for a product to be classified as a medicament is whether the preparation is essentially for therapeutic or prophylactic use (medicament) or only for care (cosmetic).
In the prickly heat powder case, the SC dismissed appeals by Nycil’s manufacturers against orders of Kerala and Madras HCs. The opening line of the order says, “The issue which this court (SC) has to deal with has placed the courts in a prickly pickle on several occasions whether medicated talcum powder is medicine or drug or a cosmetic, or in terms of the statutes in question, medicated talcum powder?
The SC bench noted while Nycil contains medical ingredients, the Kerala General Sales Tax Act thought it fit to include shampoos, talcum powder and medicated talcum powder in the classification related to cosmetics. Similarly, Tamil Nadu’s tax laws were amended to include talcum powder, whether medicated or not, in the classification relating to cosmetics. Thus, it held Nycil to be a cosmetic.
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