Entry Tax – liability to tax – Madhya Pradesh Entry Tax Act, 1976 Section 3 –the Madhya Pradesh Commercial Tax Act, 1994 – Entry Tax Act Schedule – II Entry No.32 , Entry No.55 – ‘Drugs and Cosmetics Act, 1940 Section 3(b) – common parlance – popular sense – burden of proof –establishing of tax liability by taxing authority – evidences to adduce taxability – Drugs –Hair Shampoo – Chemical – ‘Medikar’ – ‘Revive Instant Starch’ – dispute about whether ‘Medikar’ is a ‘Hair Shampoo’ or a ‘Drug’ and ‘Revive Instant Starch’ is a ‘Chemical’ for the purpose of levy of Entry Tax under the provisions of the M.P. Entry Tax Act – Assessing Authority levies penalty with interest upon non payment of entry tax by the assessee – High Court (M.P.
) by the impugned order and judgment held ‘Mediker’ is basically a medicinal product and starch being not meant for sale but used in production of other articles, could not have been made amenable to entry tax, more so, in the absence of its mention in the Schedule. It was also held that starch is not a chemical- SLP filed by State – Supreme Court – upon critical analysis of provisions of the Legislation and various judicial citations – held – ‘Mediker’ which is used for anti-lice treatment is a drug because of its medicinal affect- Once it is a drug, it cannot be a shampoo. As a natural corollary, it will not invite the liability of levy of entry tax within the meaning of Entry 32 – for ‘Revive instant starch’, the revenue claimed it to be a chemical but in common parlance it is not regarded and treated as a chemical or a bleaching powder. If the very substance or product would have a chemical composition, then only it would make the said substance a chemical within the meaning of Entry 55 – the appeal is devoid of any substance– Appeal dismissed.