9911796707
TMI Blog1990 (11) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is further stated that it is sometimes used as a vehicle for cosmetics and drugs etc. liable to be graded as pharmaceutical. In terms of Notification No. 104/82, dated 28-2-1982 and the Serial No. 21 of the Schedule specified thereunder, all drugs, medicines, pharmaceuticals and drug intermediates not elsewhere specified are exempted from whole of duty of excise tenable thereon. It is further stated that the Notification No. 104/82 was subsequently amended by Notification No. 197/82 dated 22-6-1982 by which the word bulk drug was inserted before the word drugs and the word pharmaceuticals as appearing in Sl. No. 21 mentioned above was deleted and the Notification was made applicable only to all bulk drugs, medicines and drug intermediates not elsewhere specified. Therefore, it is contended that vaseline white petroleum jelly I.P. which is of a pharmaceutical grade cleared during 26-11-1982 to 16-3-1985 was not eligible for exemption under Notification No. 234/82, dated 1-11-1982 and hence, the assessees were issued with a Show Cause Notice as to why the duty on the quantity of vaseline white petroleum jelly I.P. cleared during the aforesaid period should not be demanded. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assigned to it in the Chambers 20th Century Dictionary. It cannot be called as a medicine but can be used as a vehicle for drug/medicine and cosmetics. He further contended that Notification No. 197/82-C.E. dated 22-6-1982 as amended by Notification No. 234/82 dated 1-11-1982 Serial No. 21 of the Schedule annexed thereunder exempts only bulk-drug and not drug and hence the exemption Notification No. 234/82 cannot be extended to drug. He further contended that the product in question is not used for diagnostic or treatment of diseases as per the definition of drug appearing in Hedman s medical dictionary. He submitted that the meaning of medicine and drug are same. The impugned product is being used for cuts and wounds only and it would not come within the meaning of the term treatment of diseases . He placed before us the extract from Hedman s medical dictionary in respect of term drug appearing at page 423 and that of the term medicine at page 836 and that of pharmacopoeia at page 1065. They are reproduced below: drug: - A therapeutic agent; any substance, other than food, used in the prevention, diagnosis, alleviation, treatment, or cure of disease in man and anima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the issue has been decided in the case of Mahata Petro Chemicals case (Supra) and therein it has been held that the impugned product is a drug entitling for exemption under Notification No. 234/82. He submitted that there is no dispute regarding the classification under TI 68 but only the dispute is whether it is a bulk drug. He submitted that the impugned product finds its place in the Indian Pharmacopeia and the same is used as medicine and drug for the treatment of cuts and wounds. The assessee has taken licence under Drugs Act and have employed qualified Chemists to supervise its preparation. It is no longer a chemical but a drug entitling for exemption under Notification No. 234/82. He further relied upon the CEB letter No. 102/26/77-CE 3, dated 11-3-1980 wherein the Board has considered surgical dressing as drugs entitling for benefit of Notification No. 234/82. He placed before us the definition of drug as appearing on page 304 of the Lexicon Webster Dictionary Vol. 1 1983 Edition which is noted below: - drug:- Formerly, any ingredient used in chemistry, pharmacy, dyeing, or the like; now, any medicinal substance for internal or external use; often, a habit-forming medi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hedman s medical dictionary, the impugned product is not being used for therapeutic purpose or even in prevention, diagnostic, alleviation, treatment or cure of disease in man and animal. It is used for only treatment in cuts and wounds on skin but not in treatment of skin diseases. It has healing properties and helps the skin to heal quickly in cuts and wounds but it does not help in curing skin infections due to bacteria, or fungus. Admittedly, it does not have any germicidal properties or curative effects in skin diseases. Although the Board has considered surgical dressing as drug by its letter No. 102/26/79 CX 3, dated 11-3-1980 for purpose of granting exemption under Notification No. 234/82, it has to be observed that we have to go by the strict terms of the Notification and not by Board s clarificatory letters. The argument and contention of the Revenue, though very sound, but it is well settled that mere dictionary meaning is not to be relied upon for the purpose of classification but the trade .understanding and trade parlance test has to be applied. The manner in which the trade has understood this product and used in the commercial sense is more important for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
