1998 (8) TMI 174 - AT - Central Excise

Summary

Issues:
Classification of Thymol Crystals-IP, Thymo Crystalline Powder-IP, and Terpineol-BPC under Chapter 29 of the Schedule to the CET 1995 for concessional rate of duty based on Notification 31/88-C.E., dated 1-3-1988 without end use certificate.

Analysis:
The appellants manufactured products falling under Chapter 29 of the Schedule to the CET 1995 and claimed approval as bulk drugs under Notification 31/88-C.E., dated 1-3-1988. The Assistant Collector approved their classification lists subject to the production of an end use certificate. However, during assessment, it was discovered that the appellants had cleared the products without providing the end use certificate. Consequently, show cause notices were issued, and the Assistant Collector held that the concessional rate of duty was not applicable due to the absence of the end use certificate. The Collector (Appeals) upheld this decision, leading to the current appeal.

The notification in question, 31/88, exempts certain goods falling under Chapter 28, 29, or 30 of the Schedule to the Central Excise Tariff Act, 1985, from excess duty. The Table under the notification specifies the description of goods and the corresponding rates of duty. The appellants argued that the notification does not mandate the production of an end use certificate, contrary to earlier notifications for bulk drugs. Citing precedents, including the case of Collector of Central Excise v. Maize Products, it was established that Notification 31/88 does not require an end use certificate. The objection raised regarding the definition of "bulk drugs" under the Drugs (Prices Control) Order, 1987 was dismissed as the show cause notices did not challenge the products' classification as bulk drugs, and the approved classification lists were under Chapter 29. The contention that the products might not fall under the definition of "bulk drugs" was also refuted. Consequently, following the Tribunal's decision in the Maize Products case, the impugned order was set aside, and the appeal was allowed.