9911796707
TMI Blog2017 (11) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... bject preparation viz. Dextropropoxyphene has been referred, it is clear that only where the preparation contains in excess of 135 Mgs of Dextropropoxyphene would be considered to be a narcotic drug. It is thus clear from the said entry in the Notification that the formulation of Dextropropoxyphene containing less than 135 mgs viz. 65 mg. would stand exempted and not classified as narcotic drug or narcotic under the M & TP Act - In the present case admittedly the subject formulations contained less than 135 mgs, i.e. 65 mg of Dextropropoxyphene and hence cannot be classified as a narcotic drug or narcotic in view of the said notification. This issue is squarely covered by the decision in the case of Macleods Pharmaceuticals Ltd, Govi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Duty to the Central Government on the said product as according to the Petitioners, the product was not a narcotic drug and did not fall under the definition of Narcotic Drug as defined under Section 2- (h) of the M TP Act. A show cause notice was issued on 26th June 1997 to the Petitioners by the Inspector State Excise N Division. The Petitioners were summoned to attend the office of the Inspector State Excise for hearing. The Petitioners replied to the show cause notice contending that the Petitioners were not liable to pay the duty under the M TP Act. On 20th September 1997, the Superintendent of State Excise (Respondent no.4) issued show cause notice to the Petitioners. The Petitioners replied to the show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 21st June, 1999 by which the Petitioners were directed to pay duty at the rate of 20% ad valorem to the State Government under M TP Act and not the authorities under the Central Excise Act, 1944, provided they resumed manufacture. For past dues, the State Government was to find out the differential amount payable by the Petitioners under the M T P Act over and above the duty paid under the Central Excise Act. This shall be intimated to the Petitioners who was to deposit the said amount with the Prothonotary Senior Master of this Court within four week of such intimation from the offices of the State Government. By the said order this Writ Petition was tagged with the Writ Petitions in the matter of M/s. USV Limited Vs. Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers in M/s. USV Ltd. (Supra) and followed in Macleods Pharmaceuticals Ltd. (Supra). We are of the view that the impugned order is erroneous as was similarly been held in the said decisions of this Court. The substances contained less than 135 mg of Dextropropoxyphene is not taxable under the M TP Act. The impugned order has erroneously held that preparations containing Dextropropoxyphene in such minimal quantity although not being a narcotic drug or narcotic by itself, but does not cease to be a preparation containing a narcotic drug or narcotic. The decision of the Supreme Court relied upon in the impugned order viz. M/s. Baidynath Ayurved Bhavan P. Ltd. Vs. Excise Commissioner, U.P.AIR 1971 SC 378 . has been dealt with in M/s. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the product of the Petitioners cannot be considered as containing narcotic drug or narcotic. 6. We find that from a plain reading of the Notification dated 14th November 1985, wherein the subject preparation viz. Dextropropoxyphene has been referred, it is clear that only where the preparation contains in excess of 135 Mgs of Dextropropoxyphene would be considered to be a narcotic drug. The relevant entry 87 in the said Notification reads thus:- (87) (+) - 4- dimethylamino 1, 2-diaphenyl 3- methyl 2 butanol propionate, (the international non-proprietory name of which is Dextropropoxyphene), and its sales preparations, admixtures, extracts and other substances containing any of these drugs, except preparations for oral us ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
