THE STATE OF ANDHRA PRADESH vs M/S LINDE INDIA LTD. (FORMERLY BOC INDIA LTD)

The Supreme Court ruled that 'Medical Oxygen IP' and 'Nitrous Oxide IP' are taxable under Entry 88 of Schedule IV of the Andhra Pradesh Value Added Tax Act, 2005, at a rate of 4%/5%. The Court held that these substances qualify as 'drugs' under Section 3(b)(i) of the Drugs and Cosmetics Act, 1940, as they are used in the treatment and mitigation of diseases. The judgment of the Andhra Pradesh High Court was affirmed, allowing the appeal of Linde India Ltd against the tax liability imposed by the Commercial Tax Officer.