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TMI Blog1985 (1) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... t on 31-3-1978. Item one therein was potassium carbonate falling under T.I. 68 of the First Schedule to the Central Excises Salt Act, 1944. The respondents claimed exemption from the whole of the duty leviable on the basis of Notification 62/78-C.E., dated 1-3-1978. This classification list was approved by the Asstt. Collector on 26-5-1978. He had forwarded a letter of even date wherein, inter alia, it was mentioned that the respondents were allowed to clear the goods by following procedure under Rule 9(b). They were required to submit the end-use certificate duly certified by the Central Excise authorities having jurisdiction over the factory where such drug intermediates were supplied. On 10-8-1978 the respondents sent a letter enclosin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Departmental Representative, stated that he would confine to the appeal to the one revoking the approval granted to the classification list. Hence we are considering the appeal qua the revokation of the approval of the classification list. 4. The respondents filed a cross-objection regarding the maintainability of the appeal. However, at the time of hearing Shri Lakshmikumaran, the learned Counsel for the respondents, did not press the cross-objection. It is therefore not necessary to consider the merits of the cross-objection. The only point to be decided in the appeal is whether the respondents are entitled to the benefit of Notification 62/78 dated 1-3-1978 in respect of product potassium carbonate. The respondents have disclosed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ium carbonate is also used for the manufacture of some drugs. The learned Departmental Representative argued that unless it is an active material regulating in the formulation of the drug it cannot be considered as a drug-intermediate. According to him potassium carbonate was only a constituent for the formulation of a drug, it cannot be considered as a drug intermediate. He stated that sugar, water, also though were used in the manufacture of the drug cannot be termed as drug-intermediate. 5. Shri Lakshmikumaran contended that the notification was clear and that it is an ingredient in the preparation of medicines and formed an integral chemical in the medicinal preparation. His contention is supported by the decision of the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 6-6-1980 from the Commissioner, Food Drug Administration, Bombay, to the effect that potassium carbonate is a drug intermediate used in the manufacture of the drug para amyno salicylic acid. Another certificate by the Drug Controller and Food (Health) Authorities of the Government of Andhra Preadesh dated 1-6-1979 has also been filed to the effect that P.A.S. and its salts were manufactured from the drug intermediate potassium carbonate. In the face of these technical opinion and in the absence of any contra evidence we do not accept the contention of the Department that the potassium carbonate is not a drug intermediate. The assessing authorities were aware of the requirements of the notification and granted provisional approval in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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