2002 (6) TMI 510 - AT - Central Excise

Summary

Issues:
1. Whether the benefit of exemption under Notification No. 8/94-C.E. is available to 'Juri Tap' manufactured by M/s. Dabur India Ltd.

Analysis:
The issue in this appeal revolves around the eligibility of 'Juri Tap' for exemption under Notification No. 8/94-C.E. The Appellant, M/s. Dabur India Ltd., claimed that their product falls under the exemption as it is a formulation based on bulk drugs specified in the First Schedule to the Drugs (Prices Control) Order, 1987. The Appellant argued that 'Juri Tap' is classified as 'Quinine and its salt' under sub-heading 3003.11 of the Central Excise Tariff. They contended that their product is based on Quinine, a bulk drug covered by the DPCO, and the other ingredients are pharmaceutical aids. The Commissioner (Appeals) denied the exemption, emphasizing the necessity of end-use for National Health Programmes. The Appellant challenged this denial, citing circulars clarifying that the goods need not be used solely for National Health Programmes. The Tribunal found merit in the Appellant's arguments, stating that the Notification does not mandate specific end-uses and that Trade Notices referenced by the Commissioner (Appeals) were not applicable to the current case.

The Tribunal analyzed the submissions of both parties and acknowledged that 'Juri Tap' is indeed a formulation based on bulk drugs listed in the DPCO, 1987. The Commissioner (Appeals) had rejected the exemption solely on the basis of the product's association with the National Malaria Eradication Programme and the requirement of specified end-use. However, the Tribunal noted that Notification No. 8/94-C.E. does not impose conditions regarding the product's use for specific health programs. Referring to a Board letter clarifying a similar notification, the Tribunal emphasized that denial of exemption based on the product not being sold for National Health Programmes is unjustified. The Tribunal also highlighted that the Trade Notices relied upon by the Commissioner (Appeals) were inapplicable to the current scenario, as they pertained to different categories of bulk drugs. Consequently, the Tribunal ruled in favor of the Appellants, affirming their eligibility for the exemption under Notification No. 8/94-C.E. for 'Juri Tap'.

In conclusion, the Tribunal's decision clarifies that the benefit of exemption under Notification No. 8/94-C.E. is available to 'Juri Tap' manufactured by M/s. Dabur India Ltd. The judgment underscores that specific end-uses for National Health Programmes are not prerequisites for availing the exemption, as the notification does not impose such conditions. The Tribunal's analysis of relevant circulars and trade notices establishes the Appellants' entitlement to the exemption, based on the formulation being derived from bulk drugs specified in the DPCO, 1987.