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1988 (7) TMI 181 - AT - Central Excise
Issues:
Appeal against Collector of Customs (Appeals) order; Interpretation of Notification 55/75-C.E. for exemption from CVD; Whether culture media qualifies as a drug under the notification. Analysis: The case involved an appeal against the Collector of Customs (Appeals) order regarding the classification of imported goods described as "Culture Media" for exemption from counter valuing duty (CVD) under Notification 55/75-C.E. The original authority and the Collector (Appeals) rejected the refund claim, stating that culture media is not a drug or medicine but a base for growing microorganisms used for various purposes. The appellant argued before the Tribunal that culture media should be considered a drug under the notification based on legal precedents. They cited judgments to support their claim, emphasizing that the culture media is used for diagnosing diseases by growing bacteria. However, the department's representative contended that the notification covers drugs, not diagnostic agents, and there was no evidence of the goods being used for diagnostic purposes. The Tribunal deliberated on whether culture media imported could be deemed a drug under Notification 55/75, which covers "Bulk Drugs, medicines, drug intermediate." The appellants argued for adopting the definition of drug from the Drugs Act to interpret the term in the notification. However, the Tribunal held that the commercial understanding of the term drug should apply, citing legal precedents. They referenced dictionary definitions of drug to highlight that diagnostic agents are not commonly considered drugs. Moreover, no specific evidence was presented to show that the imported culture media was intended for diagnostic purposes, and the materials did not meet pharmacopoeial standards. Consequently, the Tribunal concluded that the imported goods, culture media, cannot be classified as a drug under Notification 55/75. As a result, the appeal was dismissed, upholding the decision of the Collector of Customs (Appeals).
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