9911796707
TMI Blog1987 (7) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... 34/82-C.E. The claim of the appellants is under entry No. 21 of the said exemption Notification. The description of the goods exempt under this serial no. is as under: All drugs and medicines not elsewhere specified. 2. The appellants have pleaded that the cholesterol is used in medicinal formulation and they should be considered as bulk drug. They have cited an order of the Tribunal C-205/85 dated 20-2-1985. In that case, the Tribunal has considered the issue whether citric acid monohydrate BP was eligible for the benefit of Notification 104/82 as amended by Notification 197/82 in terms of entry, All bulk drugs, medicines and drug intermediates not elsewhere specified. 3. The learned JDR for the department pleaded that choleste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Cholesterol is employed as an anti-irritant in spirituous hair tonics in concentrations of up to 2% and it is incorporated in many cosmetic ointments. Cholesterol has a physiological role." 6. It is seen that the Cholesterol is intended to be used as an emulsifying agent and in some hair tonics it prevents irritation. Obviously, the cholesterol only masks the irritability caused by some of the ingredients in the tonics. No evidence has been produced to show that the cholesterol treats any condition of the scalp or the hair. The appellants also have produced a letter from the Drug Controller. 7. We observe that the Drug Controller has, in this letter, referred to the scope of the term drug under Notification No. 234/82. He has opin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in a curative preparation. The Tribunal in that case allowed the appeal by remand in the light of the above criteria. We observe that in the notification under consideration in the case before us, drug intermediates are omitted from the scope of the exemption and the issue has to be in the context of whether the foods quality or bulk drug. The facts of this case are, therefore, distinguishable from the case cited by the appellants. In any case, the view held by us is in no way in conflict with the decision in the case cited. 9. We, in view of the above, hold that cholesterol imported by the appellants is not eligible for the benefit of Notification 234/82. 10. We, in view of the above, therefore dismiss the appeal. 11. [Order pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erol is shown as a constituent in the preparation of Hydrophilic Petrolatum which is described as a topical protestant. These extracts do suggest that Cholesterol has, at the least, a preventive aspect, whether it has or not uses for diagnosis, treatment, or mitigation. 14. The appellants have, however, further produced a certificate of the Drugs Controller of India, addressed to the Collector and dated 5-5-1987. This letter appears to have been in response to a query from the Collector under his letter dated 17-3-1987. It stated in this letter as follows : It is clarified that Cholesterol USP is used as an ingredient in the manufacture of drug formulation and hence eligible for duty exemptions under the notification. The definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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