Tax Classification Must Be Based on Product Form at the Time of Sale, Not Its End Use: Supreme Court

The Supreme Court has dismissed appeals concerning the tax classification of GRD Powder and GRD Mix, manufactured and marketed by Cadila Health Care Ltd. The dispute arose from the assessment year 1997-1998 under the M.P. Commercial Tax Act, 1994. The Madhya Pradesh High Court had earlier upheld classification of the products under the residuary entry, attracting tax at 8%. The tax authorities argued that the products should instead be treated…