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1997 (1) TMI 294 - AT - Customs

Issues:
Importability of Lithium Metal as a drug intermediate.

Analysis:
The appeal dealt with the importability of Lithium Metal, specifically whether it qualifies as a drug intermediate. The appellant imported Lithium Metal under the OGL heading, but Customs authorities refused clearance citing the requirement of a valid license as per a Public Notice. The appellant attended a personal hearing where they explained the chemical process involved in manufacturing the end product, Vitamin A Acetate, which does not directly include Lithium Metal. The appellant relied on a previous Tribunal judgment in a similar case to support their argument.

The Respondent, represented by the JDR, argued that the term "drug intermediate" was not defined but referred to previous cases to establish that intermediates are organic chemicals between the parent substance and the final product. The Respondent cited various definitions and previous Tribunal decisions to support their stance. The impugned order noted that Lithium Metal did not form part of the end product based on the Dy. C.C. report, which was not shared with the appellant, leading to an argument of a lack of natural justice.

The judgment emphasized that natural justice cannot be rigidly defined and relied on the chemical process described by the appellants themselves. Despite Lithium Metal participating in the manufacturing process, since it did not form part of the end product, the Tribunal concluded that it could not be considered a drug intermediate. The judgment dismissed the appeal, highlighting that previous clearance of a consignment does not justify the current import without a valid license.

 

 

 

 

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