2005 (9) TMI 581 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 245/83 regarding trade discount on medicaments under Chapter heading 3003.10.
2. Applicability of the notification to medicines not requiring price approval by Drug authorities.

Analysis:
1. The appeal revolved around the interpretation of Notification No. 245/83 concerning a trade discount claimed by a medicament manufacturer. The Assistant Commissioner disallowed the discount, but the Commissioner ruled in favor of the respondent, stating that the notification exempts goods from excise duty based on a 15% discount on the retail price specified in the price list submitted, without the requirement for price approval by Drug authorities.

2. The main contention was whether the notification applied only to medicines requiring price approval by Drug authorities. The Revenues argued that since the product in question did not need approval, the notification was inapplicable. However, the Tribunal, concurring with the Commissioner, emphasized that the language of the notification does not limit its application to medicines needing approval. The Tribunal clarified that even when price approval is not mandatory, submitting the retail price to Drug authorities fulfills the notification's requirements, making the benefit applicable to the goods in question.

3. Ultimately, the Tribunal rejected the Revenues' appeal, affirming the Commissioner's decision that the benefit of Notification No. 245/83 extended to the medicaments despite not mandating price approval by Drug authorities. The judgment underscores the importance of understanding the notification's language and requirements to determine its applicability, emphasizing compliance with specified procedures for availing benefits under such notifications.