M/S Ponds India Ltd(Merged With ... vs Commnr. Of Trade Tax, Lucknow

The Supreme Court addressed whether petroleum jelly qualifies as a 'drug' or a 'cosmetic' under the U.P. Trade Tax Act, 1948. It examined the definitions provided in the Drugs and Cosmetics Act, 1940, specifically Sections 3(aaa) and 3(b), concluding that petroleum jelly is categorized as a cosmetic rather than a drug. The Court held that the classification impacts the applicability of sales tax, affirming the legislative intent behind the definitions and the relevant notifications.