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TMI Blog1992 (5) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of C.V.D. under Notificaton No. 234/86-C.E., dated 3-4-1986 since the goods were bulk drugs . The appellants also produced a certificate dated 16-4-1987 issued by the Drug Controller to the Government of India certifying that Tartaric Acid is a bulk drug and is, therefore, eligible for exemption under Ministry of Finance Notification No. 234/86-C.E., dated 3-4-1986. The Assistant Collector, however, did not accept the certificate and preferred to assess the goods charging them to C.V.D. as aforesaid. The appellants in the course of their arguments relied upon Exemption Notification No. 147/84, dated 18-6-1984 which confirmed that Citric Acid was a bulk drug and that the Tartaric Acid was similar to Citric Acid as both are used for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise duty in respect of bulk drugs i.e. Tartaric Acid. It has, therefore, been urged that the appellants have complied with the only condition stipulated in the Notification No. 234/86-C.E., dated 3-4-1986. It was also urged that it was for the Drug Controller to satisfy himself on the basis of documents produced before him that the Tartaric Acid imported by the appellants herein satisfied the definition of bulk drug as given in the Explanation to the said Notification No. 234/86-C.E., dated 3-4-1986. The Customs authorities, urges the learned advocate, cannot go behind the certificate issued by the said Drug Controller. In support of his pleas, he relies on - (1) Hindustan Machine Tools Ltd. v. CC (Appeals) - 1990 (46) E.L.T. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al standards, normally used for the diagnosis, treatment, mitigation or prevention of diseases in human beings or animals and used as such or as ingredient in any formulation." 4.1 The certificate dated 16-4-1987 issued by the Drugs Controller to the Government of India is reproduced below :- This is to certify that the claims of M/s. Vimpex Dye Chem Pvt Ltd. dated 14-4-1987 for the following bulk drugs. 1. Tartaric Acid (Technical or B.P./U.S.P. Grade) 2. 3. 4 5. 6. 7. 8. 9. 10. as imported/manufactured under valid Drug Licence are eligible for exemption under the Ministry of Finance Notification No. 234/86, dated 3rd April, 1986 for Central Excise Duty." A question that arises for consideration in this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on a proforma invoice dated 26-2-1987. The description of the goods given in the certificate issued by the Drug Controller tallies with the description of the goods given in the invoice dated 16th April, 1987. As is apparent from the certificate, the Drug Controller is conscious of the fact that the Tartaric Acid could be both of the Technical Grade as well as of BP/USP Grade. All these grades have been considered by the Drug Controller as entitled to the benefit of Notification No. 234/86-C.E., dated 3-4-1986. Once the satisfaction of the Drug Controller, as required in terms of the aforesaid notification, is clear no more is required to be done by the appellants for availing the benefit of the said notification. It is not very materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) = 1987 (11) ECR 125 Bombay where a similar proposition, as now put forward by the learned SDR, was also advanced before the Bombay High Court but it was negatived by the said High Court. We reproduce below para 10 of the said Report :- 10. .................................... All bulk drugs and medicines not elsewhere specified . The reply given on behalf of the petitioners to this submission is that the presence or absence of the word P to any product is irrelevant. Once it is established that it is a drug in the popular or natural sense, it will be a drug for the purposes of the exemption notification. Reliance is placed on the Bills of Entry and the assessments made, where under the articles figuring in the two writ petitions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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