Excise duty exemption in respect of formulations of Artemisinin-regarding. - Central Excise - F. No. 332/26/2008-TRU

F. No. 332/26/2008-TRU Government of India Ministry of Finance Department of Revenue (Tax Research Unit) Dated : August 12, 2008 Subject : Excise duty exemption in respect of formulations of Artemisinin-regarding. The undersigned is directed to refer to notification No. 4/2006-CE dated 1.3.2006, entry no.22 in List 1. This entry exempts "Arteether or formulation of Artemisinin" from excise duty. 2. Doubts have been raised as to whether notification No. 4/2006-CE dated 1.3.2006, entry no.22, List 1 covers other formulations of Artemisinin besides Artheether Representations received from the trade as well as from field formations suggest that divergent practice are being followed in the matter. Trade has also represented that Artemisinin is a bulk drug as well as mother drug used for the manufacture of other derivatives including Arteether. Accordingly, all the formulations of Artemisinin would qualify for exemption under the above mentioned notification. However, the wordings of the entry are creating unnecessary doubt in the mind of field officers and excise duty exemption is being denied to other derivatives of Artemisinin in some field formations. 3. The matter has been examined. In 2000-2001 budget, E-Mal (Alpha-beta Arteether) was fully exempted from excise duty and the existing entry read as "E-Mal (Alpha-beta Artheether)". In 2001-2002 budget, the existing entry was amended and was substituted with "Arteether or formulation of Artemisinin". The intention was to provide the benefit of the exemption notification to all formulations of Arteminisin including Artheether. 4. In the light of the above, it is hereby clarified that notification No. 4/2006-CE dated 1st March, 2006, entry no.22 in List 1 covers all formulations of Artemisinin including Artheether and its scope is not confined to the latter.