M/S PONDS INDIA LTD(MERGED WITH H.L.LTD) 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 analyzed definitions from the Drugs and Cosmetics Act, 1940, specifically Section 3(aaa) for 'cosmetic' and Section 3(b) for 'drug', concluding that petroleum jelly is primarily intended for cosmetic use. The Court held that petroleum jelly should be classified as a cosmetic, thereby exempting it from sales tax under the relevant provisions of the U.P. Sales Tax Act, 1948.