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TMI Blog1990 (1) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... f Entry dated 7-2-1985. The consignment was assessed under Tariff Item 29.01/45 (1) of CTA read with Item No. 15AA of CET for CD and SED (C.V.D.) purposes. The appellant claimed that the consignment should have been assessed under Tariff Item No. 29.01/45(13) and should have been given benefit of concession under provisions of Notification No. 33/83 Cus dated 1-3-1983. So, it claimed refund of the amount of duty charged in excess. The refund claim was rejected on the ground that as per Condensed Chemical Dictionary by G.G. Hawley, Sodium Laurel Sulphate is used as a wetting agent in textiles, detergent, toothpaste, etc. and also because the goods imported were not of Pharmacopoeial grade and so the adjudicating authority did not treat it as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nary meaning should not be made basis for classifying tariff items ..... The words in Taxing Statutes should be interpreted in their ordinary sense. (ii) Sample of the consignment was got chemically tested on the orders of the Assistant Drugs Controller India based at Bombay Customs from M/s. Italab Private Ltd. Industrial Testing and Analytical Laboratories, Bombay and it certified Sample referred to above is of standard quality as defined in the Act and Rules made thereunder of IP 1966. (iii) The ld. Collector has not taken the facts in totality and has not properly interpreted the certificate of the Director of Medical Health Services which has stated that this substance is used in formulations of tablets and suspensions. (iv) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and technical publications like Indian Pharmacopoeia,.U.S. Pharmacopoeia, List of Pharmaceutical Ingredients, etc. (ix) Reliance is also placed on Trichem Laboratories v. C.C; Bombay -1984 (17) E.L.T. 185 (Trib.) wherein it is stated there is no such thing as a drug intermediate because all substances, having such uses, find many more different uses" To demand predominant use is impracticable because even if there was such a substance, there is no guarantee that the position would not change with the advance in science and technology. So, they have claimed that the goods should have been classified under T.I. No. 29.45/13 CTA for the purpose of custom duty and under T.I. 68 CET for the purpose of C.V. Duty. 6. The ld. D.R. submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In light of above, we have to consider whether the goods, in question, can be described as drug or drug aid/intermediate. It is true that in CCE, Bombay v. Pharmaceutical Laboratories (supra), one of the ld. Members of the Bench, Sh. G. Sankaran, Member (T) (as he then was) had opined that definition of drug as given in the Drugs Cosmetics Act, could be taken into consideration and in that view, in his esteemed opinion, gelatin capsules, which was the product, in question, in the said matter, should be considered as drug and eligible for the benefit of Notification No. 55/75 (as it was in force at the relevant time), but the majority opinion was that the said product is a drug intermediate and would be covered by Notification No. 62/7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Now, accepting for the sake of arguments that definition of drug as given in the Drugs Cosmetics Act could be considered, the definition is in 4 parts and at the most claim could be made that this product could be covered by sub-sect. 3(b)(iii). So, the goods would be drug intermediate. 11. Now, for claiming benefit of exemption under Notification No. 33/83 Cus. (as amended by Notification No. 43/84 Cus.), the goods have to answer the description in item 13 of heading 29.01/45 of CET which reads as under : (13) Pharmaceutical chemicals that is, chemicals having prophylactic or therapeutic value and used solely or predominantly as drugs, not elsewhere specified. So, as per definition in Chapter 29, what can be included is a p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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