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TMI Blog1985 (2) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... or rejected the claim by his order dated 15-9-82 saying that citric acid found use in varied industries like soft drinks, food, cosmetics, pharmaceuticals, paints, etc. etc. Its use in drinks, beverages, and pharmaceutical industries was because of general recognition of safety and its pleasant acid taste, high water solubility and chelating and buffering action. But he also said that in technical literature it was not mentioned as a drug. The Appellate Collector of Customs, Bombay also rejected the claim by his Order No. S/49-1591/82. R, dated 31-12-1982. There is a sentence in this order which runs : I regret that this evidence is not sufficient for me to arrive at a conclusion that the goods which are subject matter of the present pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drug-intermediate medicine, that is, whether it is used in the diagnosis, treatment, mitigation or prevention of diseases in human beings. We rule that it is. In our Order No. 154/85-C, dated 14-2-1985 M/s. Citric India Limited, Nasik v. C.C.E., Pune, we gave a ruling that citric acid and its citrates would class as a drug, a medicine, drug-intermediate and pharmaceutical. We have no hesitation in holding that citric acid monohydrate is a medicine and drug-intermediate. It was imported in 733 bags, and therefore, would qualify as a bulk drug. It is used in medicinal formulations; therefore, it qualifies under the explanation of bulk drugs. It is a BP product, and is a chemical that is used as an ingredient in several formulations. It quali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstance in question, must be actually and physically utilized in a medicinal formulation. If the substance is not used in such a formulation but is used in some other ways in which citric acid is capable of being used, we cannot say that the drug has been used for the diagnosis, treatment, etc. of diseases in human being and that it has been used as such or as an ingredient in a medicinal formulation. 8. We are unable to agree with the submissions of the appellants for reasons that are very simple and clear. The law requires that the bulk drug should be used for the treatment, mitigation, prevention of diseases in human beings. If the CAM is utilized in ways other than these, we cannot say that it has been used for the treatment, mitiga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more complicated exercise of abstaining from taxation. We are dealing with an exemption which is given on certain qualifications. The exemption is given to bulk drugs used in medicinal formulations or as medicines, for the treatment, cure and mitigation of human diseases. The claimant must do more than this to establish his title and not merely say that he is not required to establish his title as he cannot do so, or that the process of establishment is too complicated or difficult or impracticable. 11. The appellants say that medicines as well as drug-intermediates manufactured in India are exempt from excise duty. The Tribunal has held in many judgments that for a substance to be classed as a drug and drug-intermediate and pharmaceutic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... euticals, etc. etc., we understand the exemption to be meant only for medicines/pharmaceuticals/drugs and not to specified chemicals. Therefore, when a chemical is not used as a medicine or in a medicinal formulation, it is not entitled to the exemption because by giving exemption to citric acid monohydrate which is used in applications unconnected with the diagnosis, treatment or prevention of diseases, we would be giving the exemption to a substance that has not earned it. The substance or chemical does not earn the exemption by being that particular substance or chemical, but by functioning as a drug or a medicine, when it assumes the role of a drug, medicine or therapeutic agent, either by itself or as an ingredient in a curative prepar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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