Ponds India vaseline a drug: SC

The Supreme Court held last week that white petroleum jelly sold by Ponds India (now Hindustan Unilever Ltd) under the name Vaseline was a drug and not a cosmetic even if it had no curative value.

Therefore it should be taxed as a drug and not cosmetics under the UP Trade Tax Act. The revenue authorities had argued that since the product was applied for care of the skin, it came within the purview of the definition of "cosmetics" and not within the definition of "medicine".

The court rejected this view and ruled that Vaseline was a pharmaceutical preparation as it was used for cure and treatment of various skin disorders and not for beautification or care of the skin in the normal circumstances. Vaseline does not contain any perfume. A cosmetic ordinarily would contain some perfume, the judgment explained.