Petroleum Jelly is a drug - UP Trade Tax Act
In Ponds India Ltd (Merged with HL Ltd) v. Commissioner of Trade Tax, Lucknow , the Supreme Court answered the question, whether petroleum jelly is a “drug” or a “cosmetic”
The tax authorities have been assessing petroleum jelly as a drug (and not as a cosmetic) for a long time. This product is produced under a drug manufacturing licence under the Drugs and Cosmetics Act, 1940. The report of the Chemical Examiner also supported the contention of the appellant that petroleum jelly is a drug.
Therefore, Supreme Court held that white petroleum jelly is a drug and not a cosmetic.
Further, the revenue has not produced any reason for changing the classification of the product.
Please refer [2008] 15 VST 256 for full text of the judgment.