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Issues:
1. Interpretation of Notification No. 45/79-Cus. and subsequent amendments. 2. Applicability of Notification No. 382/86-Cus. to imported goods. 3. Classification of imported item under Chapter 99 for duty exemption. Analysis: 1. The main issue in this case revolves around the interpretation of Notification No. 45/79-Cus. and its subsequent amendments. The Revenue contended that during the relevant import period, Notification No. 45/79-Cus. did not apply to bulk drugs, including Cyclophosphamide, as they were not covered under the notification. The Revenue argued that the Collector (Appeals) erred in allowing the exemption claims of the importers based on this notification. 2. The Respondents, on the other hand, argued that the imported item was included in Chapter 99 and carried a nil rate of duty, indicating an exemption. They claimed that the item was brought under Chapter 99 by tariff changes, and the subsequent Notification No. 382/86-Cus. clarified and restored the exemption benefits. The Respondents emphasized that there was no flaw in the Collector's order and sought the dismissal of the Revenue's appeal. 3. The Tribunal analyzed the notifications and relevant provisions. It noted that Notification No. 45/79-Cus. applied to specified bulk drugs, including Cyclophosphamide, used in the manufacture of life-saving drugs. However, subsequent amendments, such as Notification No. 103/86-Cus., deleted Cyclophosphamide from the list of exempted items. Chapter 99, introduced under the Customs Tariff Act, applied to anti-cancer drugs, with specific entries for Cyclophosphamide tablets and injections. 4. The Tribunal examined Notification No. 382/86-Cus., issued on 18-7-1986, which clarified that bulk drugs falling under Chapter 99 were exempt from basic customs duty. It emphasized that items in Chapter 99 were considered life-saving drugs and medicines, not bulk drugs. The Tribunal concluded that while Cyclophosphamide for injection fell under Chapter 99 and was eligible for nil duty, Cyclophosphamide for tablets did not qualify under Chapter 99. Therefore, the Tribunal partially allowed the appeals, modifying the Collector's order to grant relief only for Cyclophosphamide for injection based on its classification under Chapter 99. In summary, the judgment clarified the applicability of notifications, the classification of imported items under Chapter 99 for duty exemption, and the distinction between bulk drugs and life-saving drugs. The decision provided a detailed analysis of the legal provisions and amendments, ultimately granting relief only for Cyclophosphamide for injection under Chapter 99.
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