JUDGMENT : C.V. Nagarjuna Reddy, J. The short issue that fell for consideration before the Andhra Pradesh V.A.T. Appellate Tribunal in T.A.No.417 of 2011 was, whether the medicines meant for poultry, fall under Entry 37 or Entry 80A of the First Schedule of the A.P. General Sales Tax Act, 1957 (for short ‘the Act’). The State Government has issued G.O.Ms.No.746, Revenue (CT.II) Department, dated 10.09.1996, under Section 9 (1) of the Act, envisaging that second and subsequent sales of Drugs and Medicines as defined in Section 3 (b) of the Drugs and Cosmetics Act, 1940 (for short ‘Drugs Act’), as included in Entry against S.No.37 of the First schedule, are exempted from payment of taxes. In that context, the above mentioned issue arose before the Tribunal. 2. The respondent-assessee was denied exemption on the ground that the medicines manufactured by it fall under Entry 80A. On a detailed analysis of the language of both the Entries and the definition of Section 3 (b) of the Drugs Act, the Tribunal held that the medicines meant for poultry manufactured by the respondent-assessee falls under Entry 37, thereby it is entitled to exemption as per G.O.Ms.No.746, dated 10.09.1996. 3. Mr.Shaik Jeelani Basha, learned Special Standing Counsel for Commercial Taxes, has submitted that the Tribunal has committed a serious legal error in holding that the medicines manufactured by the respondent-assessee fall under Entry No.37 of the First Schedule. We have considered this submission with reference to the material on record. 4. For proper understating of the issue, the contents of both the Entries as well as the definition of Drug under Section 3(b) of the Drugs Act, are reproduced below: Entry 37: Drugs and medicines” whether patent or proprietary, as defined in Section-3 of the Drugs and Cosmetics Act, 1940 (Central Act 23 of 1940), but not including (a) goods covered, described or specified in any other entry in this Schedule; (b) medicated goods; (c) products capable of being used as cosmetics and toilet preparations including tooth-pastes, tooth-powders, cosmetics, toilet articles and soaps; (d) mosquito repellants in any form (1037). Entry 80A: Feed supplements, nutrients, mineral mixture, vitamins, medicines and any other category of feed supplements, which are used in poultry feed, fish feed, prawn feed and feed for livestock (1209). Section 3 (b) of Drugs and Cosmetics Act, 1940 -Drug includes- (i). Entry 80A: Feed supplements, nutrients, mineral mixture, vitamins, medicines and any other category of feed supplements, which are used in poultry feed, fish feed, prawn feed and feed for livestock (1209). Section 3 (b) of Drugs and Cosmetics Act, 1940 -Drug includes- (i). all medicines for internal or external use of human beings or animals and all substances intended to be used for or in the diagnosis, treatment, mitigation or prevention of any disease or disorder in human beings or animals, including preparations applied on human body for the purpose of repelling insects like mosquitoes; (ii) all such substances (other than food) intended to affect the structure or any function of the human body or intended to be used for the destruction of 11 [vermin] or insects which cause disease in human beings or animals, as may be specified from time to time by the Central Government by notification in the Official Gazette; (iii). all substances intended for use as components of a drug including empty gelatin capsules; and (iv). such devices intended for internal or external use in the diagnosis, treatment, mitigation or prevention of disease or disorder in human beings or animals, as may be specified from time to time by the Central Government by notification in the Official Gazette, after consultation with the Board”. 5. In order to fall under Entry 80A, the medicines must be used in poultry feed, fish feed, prawn feed and feed for livestock. However, Entry 37 uses the phrase, “drugs and medicines” as defined in Section 3 of Drugs Act. Under Section 3(b) of the Drugs Act as extracted above, the drug includes all medicines for internal or external use of human beings or animals, etc. Therefore, in order to deprive the assessee of exemption, it has to be shown that the assessee is manufacturing the medicines meant for being used in poultry feed, fish feed, prawn feed or feed for livestock. It does not appear to be the pleaded case of the Department that the assessee has been dealing with the medicines to be used in the said feeds. Therefore, in our opinion, the medicine in question is comprehended by the definition of ‘Drug’ under Section 3(b) of the Drugs Act, which as noted above, includes all medicines used both for human being as well as animals. 6. Therefore, in our opinion, the medicine in question is comprehended by the definition of ‘Drug’ under Section 3(b) of the Drugs Act, which as noted above, includes all medicines used both for human being as well as animals. 6. In the above view of the matter, we are of the opinion that the Tribunal has correctly interpreted the Entries and held in favour of the assessee. Therefore, the question framed in ground No.2 (c) is answered against the revenue and in favour of the assessee. 7. The T.R.E.V.C. is accordingly, dismissed.