9911796707
TMI Blog1988 (4) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are that the appellants imported 'Diosgenin'. Subsequent to the importation they claimed refund of the CV duty paid in terms of Notification No. 55/75-C.E. The Assistant Collector rejected the refund claim with the observation that the goods imported were a natural primary chemical and the starting material and as such could not be called drug intermediate. The Collector (Appeals) following the ratio of the order of the Tribunal and citing one such Order No. 245/83-C dated 26-4-1983 has held that for the purpose of benefit of Notification No. 55/75-C.E. it is immaterial whether the particular chemical in such formulation is a raw material, a starting chemical or merely as a re-agent, so long as it is used in the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a subsequent Notification No. 147/84 has been specifically exempted from the levy of Central Excise Duty and this listed at Sl. No. 51 of the said notification. He conceded that in this notification there is no specific mention that the listed items are drug intermediates but all the goods mentioned thereunder are for the manufacture of drugs. He pleaded that inasmuch as the goods were exclusively meant for use in manufacture of drugs and the Tribunal in various decisions as mentioned by the Collector (Appeals) has held that even if a product is used as first input raw material in the starting stage of the manufacture of the drug, the same is eligible for benefit of the notification, the benefit should be allowed without any condition. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal stepping stones between the parent substance and the final product". It is difficult to appreciate what Shri Rege desires to convey by relying upon the dictionary meaning of the word "Intermediate". In my judgment phenol USP must be treated as a drug because of its inclusion in Pharmacopoeia and as phenol USP can be used as an intermediate for manufacture of drugs it can also be described as a drug intermediate. In my judgment, on the strength of the material produced by the petitioners, it is impossible to accede to the claim of the department that the petitioners are not entitled to the benefit of exemption notification." He pleaded that the appellants had sold its product to various buyers but are not in a position to produce any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L.T. 222. (paras 8 and 9) 4. Shri T.V. Krishnamurthy, the learned Consultant for the appellants stated that so far as the applicability of the exemption under Central Excise Tariff for cv duty purposes is concerned the position stands settled in view of the Larger Bench decision in the case of Carborundum Universal referred to supra. He pleaded that the Larger Bench had taken into account the Supreme Court decision in the case of Khandelwal. He also pointed out that the use of the raw material stands settled with the findings of the original authority and it has been conceded that the goods are for the manufacture of the drugs. 5. We observe that the Customs authorities have not challenged the appellants contention that the goods imported ..... X X X X Extracts X X X X X X X X Extracts X X X X
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