<b>Brief case:</b> Test to separate cosmetics and drugs

A weekly selection of key court orders

When question arises as to whether a product sold over the counter is cosmetic or medicine for tax purposes, the issue cannot be decided under the central excise law.  The question arose last week in the case of Johnson & Johnson versus CIT when the revenue authorities imposed 12.5 per cent tax on two products, ‘Shower to Shower’, a prickly heat powder, and ‘Listerine’ mouthwash.  They maintained that these were not medicines, entitling lower levy. The Tax Board upheld the view, against which the company appealed to the high court. It argued they have medicinal value as shown in the