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TMI Blog2006 (6) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... al product manufactured by the appellant viz. Tetracyclin and Streptomycin are bulk drugs which are wholly exempt from duty, therefore duty was payable on this intermediate product as Prepared Culture Media arising during the course of manufacture of Tetracycline and/or Streptomycin bulk drugs at the assessees premises. 1.2 The assessee is contesting that the product sought to be levied duty under 38.21 is not covered under the heading and no evidence whatsoever has been produced by the Revenue regarding the marketability of the said product and also the product is not marketable at all as it has no shelf life. 1.3 The appellants are manufacturing Streptomycin and Tetracycline. The process of manufacture of Streptomycin which would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tics) or for other scientific purposes or in industry (e.g. in the manufacture of vinegar, lactic acid, butyl alcohol) can find nourishment and multiply. They are usually prepared from meat extracts, fresh blood or blood serum, eggs, potatoes, alginates, agar-agar, peptone, gelatin, etc. and often contain additional ingredients such as glucose, glycerol, sodium chloride, sodium citrate or dyes. Acids, digestive ferments or alkalis may be added to bring them to the required degree of acidity or alkalinity, etc. There are also other media, e.g. mixtures of sodium chloride, calcium chloride, magnesium sulphate, potassium hydrogen sulphate, potassium aspartate and ammonium lactate in distilled water . 1.5 This stipulation of HSN and in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te, or a more complex nitrogen source such as soyabean meal, cornsteep liquor, or whey. In addition, various salts may be added to the fermentation medium. 1.8 In this view, the term production media is not a word coined by the assessee. This term is a well known one in the antibiotics/bulk drug field and is used in the technical books and therefore production media is different from prepared culture media. 1.9 There is no material to bring evidence of the entity under dispute to be capable of the marketing or actually being marketed. The report relied upon in the order impugned to the effect that the ingredients of the cultured medium after mixing as such (before addition of water) is packed in de-hydrated and sterile condition the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (S.C.), Caldia Laboratories v. Commissioner - 2003 (152) E.L.T. 262 (S.C.) (marketability and evidence), Collector v. Ambalal Sarabhai Enterprises - 1989 (43) E.L.T. 214 (S.C.) where marketability was not established as the goods were found to be transitory item and there was no evidence that there could be ever removed for market. These cases go to establish the decision in favour of the assessee. 2.1 We find no reasons to hold the exigibility on products emerged, which comes into existence in the appellants premises who is an admitted manufacture of Streptomycin and Tetracycline bulk drugs on grounds of no manufacture. When the manufacture of entity can not be upheld, then levy of duty cannot be upheld and duty demands and other liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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