1983 (12) TMI 63 - HC - Central Excise

Summary

Issues:
Classification of Analgin Injections under Tariff Items 14-E and 68; Interpretation of Monographs in U.S.S.R. pharmacopoeia; Review of order under Section 36(2) of the Central Excises and Salt Act, 1944.

Analysis:
The petitioners, as manufacturers of patent medicines, sought to classify "Analgin Injections" under Tariff Item 68, having received approval for the label and classification list. A show cause notice was issued for a short levy, contending the injections did not fall under Monograph 57 of the U.S.S.R. pharmacopoeia. The Appellate Collector allowed the appeal, recognizing the injections as a Pharmacopoeial product. However, the Government, through a show cause notice, held the injections liable under Tariff Item 14-E, leading to this challenge under Article 226 of the Constitution.

The Explanation to Item 14E defines "Patent or proprietary Medicines" and considers the U.S.S.R. pharmacopoeia for classification. Monograph 57 describes Analgin as a powder with specific dosages, while Monograph 58 covers Analgin in tablet form. The petition argued that Monograph 57 encompasses Analgin in injection form as well, supported by the broad interpretation of pharmacological actions in the U.S.S.R. pharmacopoeia.

The counsel for the Department contended that since Analgin tablets have a separate monograph, the injections do not fall under any monograph. However, the court disagreed, emphasizing that Monograph 57 includes various forms of Analgin administration, as indicated by the dosages provided. The court stressed the strict construction in taxing statutes, favoring the assessee in case of doubt. Consequently, the revisional order was deemed erroneous, and the petition was allowed, setting aside the Government's order and restoring the Appellate Collector's decision.

In conclusion, the court upheld the petition, quashing the Government's order and reinstating the Appellate Collector's decision. No costs were awarded in the circumstances.