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TMI Blog1984 (4) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... and formulations. It claims that this product is a drug and must be classified under Item 68 CET and be given the exemption available to the drugs under Notification 55/75-C.E. The Central Excise, however, assessed the chemical under Item 15AA as a surface active agent because it has surface-activity. The appellant says that though it has surface-active properties, it is an ingredient in a drug formulation and deserves classification as a drug rather than as a surface-active substance. 3. The learned Counsel for M/s. Anand Synthochem Pvt. Ltd. argued before the Tribunal that it is its use that should govern its assessment. The chemical has an I.P. rating and has to be used only in drug manufactures. It cannot be used or dispersed in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reduce surface tension. The Tribunal s decision quoted by the appellant s Counsel was in relation to a dispute about classification as a drug intermediate; this case is different. 6. The assessee is not required to manufacture only I.P. grades. He quoted the Dunlop Judgment that use should not form a basis for assessment; the classification must always be based on the composition and character of the thing assessed. Sugar and alcohol find use as or in drug manufacture, but nobody has suggested their assessment as drugs. Hawley s dictionary defines drug - (1) A substance that acts on the central nervous system e.g., a narcotic, hallucinogen barbiturate, or psychotropic drug. (2) A substance that kills or inactivates disease-causi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otherwise impenetrable tissues and areas. That it is used as a drug for healing or to aid healing may be true and we think is quite true. But unfortunately, we are on the matter of assessment and our only objective is to see, what, of the many headings, is the most suitable heading. Item 68 is not a heading as it has no description or nomenclature. It covers only goods that cannot be covered by the preceding 140 or so heading. Unless the product has been rejected by all, Item 68 cannot accept it. 9. Can we say that SLS has no heading into which it fits ? Cannot, Item 15AA fits it well and perfectly, because this heading is designed for just such surface active preparations. All the arguments advanced on behalf of M/s. Anand Synthochem P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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