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TMI Blog1990 (6) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... e aforesaid item and presented the Bill of Entry No. 3199/310 and claimed its clearance under OGL vide Appendix 10 of the Import Policy AM 1982-83. The authorities however objected to its clearance and got the same examined by the Chemical Examiner/Dy. Chief Chemist, who vide his report dated 28-5-1983 opined that both the samples taken there from were of Diethylene Diamine (Piperazine) in the form of solid mass, with active ingredient being 59.9% and 59.2%. The authorities therefore issued a show cause notice dated 28-6-1983 alleging that the import of Piperazine was canalised under Appendix 9 of AM 1982-83 Policy and that the import by the appellants directly was not permissible. The appellants in reply to the show cause notice came forwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as canalised was the only pharmaceutical preparation and not any other quality and when the item imported is admittedly not in conformity with the pharmacopy grade, the objection raised by the department and the finding given by the adjudicating authority is not sustainable. 4. Shri Deepak Kumar, the Learned JDR, appearing for the Department submitted that piperazine is admitted to be a drug and what was imported by the appellants was piperazine, which was free from impurities. He conceded that the test report indicates that the same was not of pharmaceutical grade but submitted that this indicates that the drug imported was a sub-standard one. In his submission, even then it does not lose the characteristic of a drug and when it remains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is also known as Piperazine, and that this item is classified as a drug in the Policy, having a specific entry for the same at Serial No. 14 in para 3 of Appendix 9. 8. The appellants themselves have admitted that they have imported the said item for manufacture of the pharmaceutical products namely piperazine citrate and piperazine hexahydrate, used for destroying roundworms in human intestine. 9. The only point that is agitated, as mentioned above, is that the same is not of pharmaceutical grade or standard, all the same, it is clear that the same has to be used in preparation of a pharmaceutical product. 10. What the policy has intended by drugs in para 3 of Appendix 9, has nowhere been specified, except in Para 218(4) of Ch. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m to be imported, though may have all the characteristics of drug is not included if the same is sub-standard, or does not meet the required standards laid down in Pharmacopoea. 13. Under the circumstances, the plea of the learned Advocate for the appellants, that the item imported is not the drug cannot be accepted. 14. The authority below has based his conclusion on the basis that the active ingredient is 59.9% in one lot and 59.2% in another. As could be seen from Para 218(4) of Ch. 21 of the Policy, the active ingredient is the main criteria in ascertaining as to whether the item is a drug or not. Pleading that the criteria adopted is not permissible, the ld. Advocate, referred to and relied upon the decision of this Bench, in C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s mutandis made applicable here. Further, here the question of active ingredient may not even assume much importance, as what is imported is piperazine alone, and that is the sole active ingredient. 17. It is also pleaded that the item imported is a drug intermediate, and not a drug . An item may have multifarious uses, and even assuming that the same may also be used as a drug intermediate, the same does not lose its characteristic as the basic drug and as a basic drug, the same is included in Appendix 9, and as such, has been made a canalised item. 18. Taking all the factors into consideration, there appears no reason to interfere with the findings of the authority below that the item imported being a canalised item, cannot be import ..... X X X X Extracts X X X X X X X X Extracts X X X X
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