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TMI Blog2023 (8) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... ssary for the circulatory system to assimilate them and for the purpose of maintaining the electrolyte balance in the circulatory system of the body, whether of a human or an animal. The object and purpose of the grant of such an exemption is to ensure that these products are available at a reduced price and that therefore, they can be easily accessible to be used for human beings or animals readily as it is in the nature of a life-saving product - sufficient material was produced by the Assessees in response to the show cause notice as well as at the time of being heard before the order of the Commissioner was passed in order to demonstrate the nature of the subject product. No doubt, the order in original is a lengthy one and takes int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shiv Mangal Sharma, Adv. Ms. Chinmayee Chandra, Adv. Mr. Manish Pushkarna, Adv. For Respondent(s) Mr. V. Lakshmikumaran, Adv. Ms. Charanya Lakshmikumaran, AOR Ms. Apeksha Mwhta, Adv. Ms. Falguni Gupta, Adv. Ms. Neha Chaudhary, Adv. Ms. Umang Motiyani, Adv. ORDER These appeals are filed by the Revenue assailing order dated 13.10.2008 passed by the Customs Excise Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad (hereinafter referred to as the CESTAT , for the sake of convenience). By the said order, the CESTAT has observed that the exemption granted earlier by Notification dated 01.03.2000 (Notification No. 6/2000) and the subsequent Notification dated 01.03.2001 (Notification No. 3/2001), in the context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 in respect of Serial No. 47-A under the Chapter Heading No./Sub-Heading No. 30. As per the said Notification, exemption was provided from payment of excise duty insofar as the products falling under the description of intravenous fluids. Subsequently, by Notification No. 3 of 2001 C.E. dated 01.03.2001 insofar as the subject products are concerned, it was stated as Intravenous Fluids, which are used for sugar, electrolyte or fluid replenishment . Learned counsel for the appellant contended that the object of issuing the Notification dated 01.03.2001 insofar as intravenous fluids are concerned, was in order to specifically indicate as to for which intravenous fluids, as such, the exemption was available. In other words, the contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the Revenue as well as against the Revenue and also brought to our notice another judgment of this Court in the case of CCE Customs vs. Parenteral Drugs (I) Ltd. (2009) 14 SCC 342, wherein this Court had remanded the matter to CESTAT to consider the same on the particular aspect of the composition of the product and also as to whether the same was a Schedule `H drug or not. In that regard, it was urged that since there is no detailed discussion in the impugned order, the matter may be remanded to CESTAT for giving a finding on the particular issue which arises in these appeals. Per contra, learned counsel appearing for the respondent drew our attention to the specific words used in the Notification dated 01.03.2001 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ric acid and chlorocresol was only to enhance the shelf life product, as such, and to ensure that the product does not decompose with the passage of time. It was also submitted that since the necessary license was also sought and granted, it cannot be a case where the Assessees were manufacturing these products without license and there was an attempt to escape the payment of excise duty under the shelter of the exemption notification. It was also contended that ultimately the composition of the product in question was nothing but what is in an intravenous fluid in the sense that it consists of amino acids, sugar and electrolytes and is purely for the purpose of fluid replenishment and not a medicine for treatment of any disease as such. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pears to be a mis-impression in the mind of the Authority while considering whether, the Assessees herein were entitled to the benefit of exemption or not. The simple test that ought to have been followed was to note the composition of the product in question and not as to whether it was being used for treatment of any particular disease. A reading of the license issued to the Assessees, makes it apparent that the composition of the product predominantly consists of Glucose (sugar) and electrolyte (minerals) which are essentially for the purpose of replenishment, not necessarily only used at the time of treatment for any particular disease but also as a preventive measure. Mere addition of Boric Acid and Chlorocresol, that too in minimal pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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