1998 (1) TMI 198 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification 44/90 regarding the duty payment on single ingredient formulations of Rifampicin.
2. Whether the waiver of duty granted by the notification covers all formulations of Rifampicin or only specific formulations.

Analysis:
1. The appeal revolved around the question of whether single ingredient formulations of Rifampicin were liable to pay duty from February 1989 to March 1989 following the shifting of Rifampicin from the First Schedule to the Second Schedule. The Assistant Commissioner initially held that formulations of Rifampicin were not covered by Notification 44/90, which waived duty on Rifampicin and formulations with Isoniozied (INH) during the relevant period. However, the Commissioner (Appeals) disagreed, stating that the notification covered all formulations of Rifampicin.

2. The Appellate Tribunal, after considering the arguments, agreed with the appellant's representative that Notification 44/90 only exempted duty on Rifampicin and formulations with INH, not all formulations of Rifampicin. The Tribunal noted that the plain language of the notification specified the waiver for a particular formulation of Rifampicin with INH. As the goods in question did not fall under this specific formulation, the broader interpretation given by the Commissioner (Appeals) was deemed incorrect. The Tribunal emphasized that the waiver was limited to Rifampicin and its specific combination with INH, as clearly outlined in the notification.

3. The Tribunal highlighted that the Commissioner (Appeals) had relied on a previous notification, 29/89, and inferred the intention behind Notification 44/90, which was not supported by the explicit wording of the latter. The Tribunal concluded that the Commissioner's reasoning was not aligned with the plain language of Notification 44/90 issued under Section 11C. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant, emphasizing the restricted scope of the duty waiver as per the specific terms of the notification.