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TMI Blog1981 (9) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... e Petitioners manufacture, inter alia, Aniline, Para Nitro Chlaro Ben-zene (PNCB) & Acetanilide, which are excisable under Tariff Item 68 of the Central Excise Tariff. From 1-3-1978 "all drugs, medicines, pharmaceuticals and drug-intermediates elsewhere specified" were exempted by Notification No. 62/78, dated 1-3-1978. The basic issue to be decided is whether the three products mentioned above ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited various uses of Acetanilide and held that Acetanilide like Aniline could not be considered as a drug-intermediate, because of the prepondence of its use as other than drug-intermediate. 2. The Petitioners were heard by the Government when S/Shri M. T. Talathi, N.S. Gambhir, Dr. P. V. Arur, V. Kumar, R.M. Shende, appeared for the personal hearing. In their revision application and during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imate intermediate before the drug comes into existence. They have contended that the criteria of predominant use is neither correct nor warranted in determining whether an item is a drug-intermediate or not. It is their contention that an item should be declared as a drug intermediate to the extent that it was used in the manufacture of drugs. In other words, the end product must be a drug. Likew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and oral submissions. Government find considerable force in the contention that the view taken by the lower authorities tends to defeat the object of the exemption notification.The interpretation on the scope of the term 'drug intermediate' put by the lower authorities is not warranted on a plain reading of the notification. Government observe that the notification does not specify the stage of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Petitioners should get the benefit of the exemption notification for the three items to the extent that they are actually used in the manufacture of drugs. In the Government's view, this requirement of end-use though not built into the exemption notification is not only implied but also becomes imperative in a situation where the product has uses other than as drug-intermediate whereas the exem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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