2001 (4) TMI 129 - AT - Central Excise

Summary

Issues: Appeal against duty demand and penalty under Rule 173Q based on compliance with Notification 170/70 for samples of medicaments.

Analysis:
1. The appeal challenged the Commissioner of Central Excise's order confirming duty demand and penalty under Rule 173Q due to non-compliance with Notification 170/70 for samples of medicaments.
2. The exemption under Entry 24 of Notification 171/70 required samples to be distinctly different from regular trade packing and marked as "samples not to be sold," conditions not met by the appellant.
3. The appellant argued that the Drugs and Cosmetics Act did not allow for distinct packing of samples, citing provisions from the Act.
4. The Act's provisions concerning product containers and closures were discussed, emphasizing compliance with pharmacopoeia requirements for containers and closures.
5. The Tribunal found that compliance with the Act's provisions did not prevent distinct packing of samples, as multiple packings for the same product were possible.
6. The appellant referred to a Ministry of Finance letter advising distinct packing for samples, claiming past breaches were condoned, but the Tribunal disagreed, stating the letter reiterated compliance with Notification conditions.
7. The Tribunal upheld the duty demand but reduced the penalty, noting no reason to interfere beyond the penalty reduction.
8. The appeal was allowed in part, confirming duty demand but reducing the penalty imposed.