9911796707
TMI Blog2001 (5) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... tandard quality as defined in the Drugs Cosmetics Act, 1940 The DYCC, New Custom House stated that the chemical was found to be inorganic silicates in the form of powder each was other than 4-(4-Chlorophenyl) - 4 - Hydroxypiperdine . The test report of a private company showed that the product was the combination of the chemical plus inorganic silicates slightly over 80%. The 4th agency also a private laboratory was not able to give any opinion. The value declared was about Rs. 18 lakhs. The exporters claimed that the consignment was purchased from a trader for Rs. 16.25 lakhs. It was claimed that the payment was made in cash. The cash withdrawals from the bank were shown as supporting evidence. Show cause notice was issued alleging t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ler was the key and that the export was in contravention of the provisions of the Drugs and Cosmetics Act, 1940. 5. The phrase standard quality means as per paragraph 16 of the Drugs and Cosmetics Act, 1940 - (a) in relation to a drug, that the drug complies with the standard set out in the Second Schedule, and (b) in relation to a cosmetic , that the cosmetic complies with such standard as may be prescribed. In the present case, we are unable to make out whether the product declared was a drug or whether it was a cosmetic. No guidance is available from the proceedings at all. Shri Doiphode was instructed to state that it was a drug intermediate. The search through the Martindale s Extra Pharmacopoeia does not show coverage of this subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the physical form of substance that itself would not lead to the conclusion that a new article had been manufactured. Although the High Court was conducting an enquiry into an activity covered by Section 2(f) of the Central Excise Act, 1944, the view expressed is material. In this case, from the proceedings we do not know whether an addition of inorganic silicate would take away or materially alter the character of 4-(4-Chlorophenyl)-4 Hydroxypiperdine, or not. 8. In the proceedings much has been said about the source from which the substance was obtained. Mention is made of the previous export. Doubts are cast whether the amounts changed hands from the exporter to the consumers of the substance or not. Shri Choubey took us through this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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