1986 (12) TMI 167 - AT - Central Excise

Summary

Issues:
- Classification of imported liquid paraffin as a medicinal product under Central Excise Tariff.
- Eligibility for exemption from C.V. Duty under Notification No. 55/75-C.E.
- Requirement of goods to be of pharmaceutical standard for duty exemption.
- Interpretation of Tribunal judgments in similar cases.
- Sufficiency of evidence to establish goods as pharmaceutical standard.

Analysis:
The case involved an appeal by M/s. Pacific Exports, Bombay, challenging the rejection of their refund application for liquid paraffin imported as a medicinal product under Central Excise Tariff. The Assistant Collector and the Collector of Customs (Appeals) rejected the claim due to lack of evidence that the goods met pharmaceutical standards, as required for duty exemption under Notification No. 55/75-C.E. The appellant argued based on Tribunal judgments in similar cases, citing the need for goods to fall under Tariff Item 68 and be of pharmaceutical standard for exemption. However, the evidence provided, including a certificate of analysis, failed to establish the imported goods' pharmaceutical standard.

The Tribunal noted that the appellant could only claim a refund if the liquid paraffin met pharmaceutical standards and was exempt from C.V. Duty as per Notification No. 55/75. Referring to the notification's specific exemption for drugs, medicines, pharmaceuticals, and drug intermediates, the Tribunal emphasized the necessity for the goods to be of pharmaceutical standard. Despite the appellant's reference to Tribunal judgments on classification criteria, the evidence presented did not demonstrate the imported goods' compliance with pharmaceutical standards.

The Tribunal reviewed the import documents, including the Bill of Entry, indent, and certificate of analysis, but found no conclusive proof that the liquid paraffin met pharmaceutical standards. The certificate issued by Witco International lacked any indication of the goods being of pharmaceutical standard. Consequently, the Tribunal upheld the lower authorities' findings and dismissed the appeal by M/s. Pacific Exports, emphasizing the crucial requirement for imported goods to meet pharmaceutical standards to qualify for duty exemption under Notification No. 55/75-C.E.