Dabur India vs. Commissioner, Central tax, Ghaziabad
It has been observed that the odomos product is not normally prescribed as a medicine by medical practitioners as a drug. There is no restriction on odomos sales. The product is sold on demand at the counters in shops and establishments. Sales are not restricted to chemists alone.
The Court also said that the common parlance test or the market identity test for classification of the product was satisfied. Further, the active ingredient of the product is NNDB which is the improved version of the formula of DEET. The essential quality of DEET is mosquito repelling. The NNDB was introduced to overcome the itchiness caused by the DEET. The basic component of the product is DEET while the quality enhancements are created by the NNDB.
The HC ruled that odomos is not a medicine, it is a mosquito repellant, hence, it is taxable @18% Goods and Services Tax (GST).
The details of this judgement can be read here : Dabur India