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Supreme Court of India 2023-05-04 dismissed

HEINZ INDIA LIMITED vs THE STATE OF KERELA

Bench: 2 — S. Ravindra Bhat, Dipankar Datta

In Brief

The Supreme Court dismissed appeals by Heinz India Limited and Glaxo SmithKline Pharmaceuticals challenging the classification of Nycil Prickly Heat Powder. The core issue was whether this medicated talcum powder should be taxed as a medicine or as a cosmetic under sales tax statutes in Kerala and Tamil Nadu. The Court held that when a statute specifically includes "medicated talcum powder" within cosmetics entries, plain statutory language must be followed, regardless of the product's medicinal ingredients or curative properties. The specificity of legislative language overrode traditional tests distinguishing medicines from cosmetics, resulting in classification as a cosmetic product.

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Sales Tax Excise and Customs Fiscal Legislation Product Classification Statutory Interpretation

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