Page 46 - GSTL_7th May 2020_Vol 36_Part 1

4 GST LAW TIMES [ Vol. 36
or in the diagnosis, treatment, mitigation or prevention of any disease or dis-
order - Section 3(b)(i) of Drugs and Cosmetics Act, 1940. - Stipulates that medi-
cines or substances used for or in diagnosis, treatment, mitigation or prevention of any
disease or disorder in human beings, or animals shall be included within the ambit of the
definition. It is significant to note the use of the phrase “for or in” in the definitional
clause. Section 3(b)(i) includes both medicines or substances used for the diagnosis,
treatment, mitigation or prevention of any disease or disorder or in the diagnosis, treat-
ment, mitigation or prevention of any disease or disorder. Where the former highlights
the direct use of the product in question in diagnosing, treating, mitigating or preventing
a disease or disorder, the latter highlights its instrumental use as a facilitative agent in
diagnosis, treatment, mitigation or prevention of any disease or disorder. [(1969) 1 SCR
219 relied on ]. [para 15]
Interpretation of statute - Literal interpretation - Interpretation that
words of statute must be construed according to plain, literal and grammatical
meaning of words. - The words of a statute should be first understood in their natural,
ordinary or popular sense and phrases and sentences should be construed according to
their grammatical meaning, unless that leads to some absurdity or unless there is some-
thing in the context, or in the object of the statute to suggest the contrary. Where a word
has a secondary meaning, the assessment is whether the natural, ordinary or popular
meaning flows from the context in which the word has been employed. In such cases, the
distinction disappears and Courts must adopt the meaning which flows as a matter of
plain interpretation and the context in which the word appears. [para 16]
Appeals dismissed
CASES CITED
ACTO, Special Circle Jodhpur v. Jodhpur Gases — 2009 SCC Online 2459 — Referred ......... [Paras 8, 29]
Chimanlal Jagjivandas Sheth v. State of Maharashtra — AIR 1963 SC 665 — Referred ......... [Paras 13, 29]
Chimanlal v. State of Maharashtra — 2004 (137) STC 68 — Referred ......................................... [Paras 8, 29]
Commissioner v. Dilip Kumar and Company — 2018 (361) E.L.T. 577 (S.C.) — Referred .... [Paras 17, 29]
Indian Oxygen v. State Karnataka — 1990 (79) STC 351 — Referred .................................... [Paras 8, 25, 29]
Inox Air Products Ltd. v. Assistant Commissioner
— 2014 VIL 339 AP — Referred ................................................................................[Paras 5, 7, 8, 28, 29]
Ishwar Singh Bindra v. State of UP — (1969) 1 SCR 219 — Relied on ....................................... [Paras 14, 29]
Panki Oxygen v. State of Uttar Pradesh — 2014 SCC Online All 2144 — Referred ............ [Paras 8, 27, 29]
Southern Gas Ltd. v. State of Kerala — 2005 (139) STC 504 (Ker) — Referred ..................... [Paras 8, 24, 29]
State of Goa v. Leukoplast (India) Ltd. — 1997 (92) E.L.T. 19 (S.C.) — Referred ..................... [Paras 19, 29]
State of Haryana v. Suresh — (2007) 15 SCC 186 — Referred ..................................................... [Paras 17, 29]
State of HP v. Pawan Kumar — (2005) 4 SCC 550 — Referred ................................................... [Paras 17, 29]
State of Kerala v. Indian Oxygen — 2003 (129) STC 471 — Referred .......................................... [Paras 8, 29]
State of Rajasthan v. Babu Ram — (2007) 6 SCC 55 — Referred ................................................. [Paras 17, 29]
State of Tamil Nadu v. Ram Oxygen (Pvt.) Ltd. — (2010) 35 VST 478 — Referred ............. [Paras 8, 26, 29]
REPRESENTED BY : S/Shri G.N. Reddy and Guntur Prabhakar, AORs,
for the Petitioner.
Shri Annam D.N. Rao and M/s. Khaitan & Co.,
AORs, for the Respondent.
[Judgment per : Dhananjaya Y. Chandrachud, J.]. - Leave granted.
2. The short point of law that arises in the present appeals is whether
‘Medical Oxygen IP’ and ‘Nitrous Oxide IP’ are taxable under Entry 88 of Sched-
ule IV of the Andhra Pradesh Value Added Tax Act, 2005 [2005 Act] or as ‘un-

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