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TMI Blog2006 (3) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... Literature from the appellant s supplier (showing that the item, was pharmaceutical grade) and that the consignments were actually used in drug making were also produced. Appellant's contentions were rejected by the lower authorities and it was held that exemption was not due to the appellant. The present appeal is directed against those orders. 3. We may reproduce the relevant parts of the exemption notification in question: Exemption to certain specified goods imported for manufacture of drugs. - In exercise of the powers conferred to sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 44-Customs, dated the 1st March, 1979, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the Table annexed here and falling within Chapter 28, Chapter 29 or Chapter 30 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for the manufacture of penultimate drug intermediates or drugs. (a) 20% ad valorem, when, the standard rate of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant s contention on classification is that Heading 29.26 covers Nitrile--function compounds and that 2926.10 specifically names Acrylonitrile . The point made by the appellant is that since Acrylonitrile is specifically mentioned in heading meant for organic chemicals and the notification specifically had exempted such chemicals when used in the manufacture of drugs, and when the appellant had produced proof of such use, the lower authorities were in error in treating the item as classifiable. under chapter 55. It is also its contention that since the imported item has satisfied the requirement of specified use. the exemption cannot be denied merely on the ground of classification dispute. 6. We find merit in the appellant's claim. A reading of the notification leaves no room for doubt that exemption is available to Acrylonitrile used in the manufacture of drugs. The appellant is a manufacturer of bulk drugs. Appellant has filed the following manufacturing process clearly bunging out the place of Acrylonitrile in the production : BRIEF MANUFACTURING PROCESS OF 7-ADCA USING ACRILONITRILE FIBRE ROUTE The manufacturing of 7-ADCA is 3 step process. In the first st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dation. It is also unaffected by long and continuous exposure to 6-APA 7 - ADCA Other Properties Chemical stability over wide pH range. Low flow resistance enabling high flow rates in columns. Negligible physical changes with change in pH or salt concentrations Specifically tailored for 6 - APA and 7 - ADCA manufacture. Packaging The fibre is packed moist in D.I. water and stored/transported at temperatures between 5-10'C. Care should be taken to prevent freezing. This is important For your requirements please contact : NICHIMEN CORPORATION 13-1. Kyobashi 1-Chome, Chuo Ku. Tokyo, Japan Chemicals Dept. No III Cable: TYNICHIMEN TOKYO Telex: J22620 J22329 TOYO JOZO CO., LTD. 4-5-13 SHIBAURA, MINATO-KU TOKYO-108 JAPAN PHONE: 03 - 5476 - 8218 - 8219 TELEX 242-3290 TOYO TK FAX 03-54176-8277 " It is clear from the manufacturing process as explained by the appellant and the literature of the foreign manufacturer supplier that Wet Acrylonitrile Fibre under import are chemical products for use in pharmaceutical industries. Acrylonitrile is also mentioned in heading 2926.10. The correct classification of such a chemical cannot be under 55. 7. Whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be unreasonable to take a narrow view of the Notification and not to extend its benefit. We read paras 7 and 10 of that judgment: "7. The Notification provides that the articles specified in column (2) of the Table and falling under Heading No. 84.06 are exempt from payment of a certain portion of the custom duty. Paragraph 2 of column (2) of the Table not only mentions internal combustion piston engines, undoubtedly forming the only subject-matter of Heading No. 84.06, but it also mentions the parts thereof , that is to say, parts of such engines. Heading No. 84.06 does not refer to parts of such engines. Non-mention of 'parts' in Heading No. 84.06 has given rise to a controversy between the parties. It may be that the Notification has been inartistically drafted. It is, however, clear that the Notification not only intends to grant exemption to internal combustion piston engines, but also to parts thereof . When, therefore, the intention is clear and manifest it will be unreasonable to take a narrow view of the Notification and not to extend its benefit to the parts of the engines referred to in Heading No. 84.06. To accept the contention made on behalf of the respondents t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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