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TMI Blog2025 (2) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... e Customs Department in the format asked for by them. Thereafter, the Department is free to issue a Show Cause Notice, if it so chooses and take it to its logical conclusion. It is not opined whether the Lactulose imported by the Petitioner can be classified under Sr. No. 166 (A) or 166 (B) of the 2017 Notification.
Conclusion - The Customs Department are directed to assess the Bills of Entry with the benefit of partial exemption under Sr. No. 166 (A) of the 2017 Notification, subject to the Petitioner furnishing a bond.
Petition disposed off. X X X X Extracts X X X X X X X X Extracts X X X X ..... mported by the Petitioner was classifiable under Chapters 28, 29 and 30 of the Customs Tariffs Act, 1975 and since they form part of List 3 of the 2012 Notification, they would be eligible for the exemption as provided under Sr No. 147 (A) of the 2012 Notification. What is important to note is that the Commissioner, in the said order, held that whether the Lactulose imported by the Petitioner were Bulk Drugs and not formulations, would have no effect on the eligibility for the benefit extended under the 2012 Notification. It is not in dispute that the said order dated 31st January 2019 passed by the then Commissioner of Customs (NS-I) was accepted by the Review Committee and has attained finality. 7. Once again, for imports made between March 2018 to August 2019, the Petitioner filed 13 Bills of Entry and sought the benefit of partial exemption from duty under Sr. No. 166 (A) of the 2017 Notification and Sr. No. 180 of Schedule I under Notification No. 1/IGST-Rate dated 28th June 2017. 8. Once again, the Customs Authorities disputed the said claim of partial exemption from customs duty alleging that the Lactulose imported by the Petitioner were Bulk Drugs and hence not entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance of the imported Lactulose, the advocate for the Petitioner once again requested Respondent No.3 to permit clearance of the Lactulose with the benefit of the exemption within 48 hours. Since there was no response to even this letter, the present Petition is filed seeking the reliefs set out above. 14. In this factual backdrop, Mr. Dada, the learned Senior Counsel appearing on behalf of the Petitioner, submitted that there is absolutely no reason why the Petitioner should not be allowed to clear the imported Lactulose by claiming exemption and giving a bond in the format required by the Customs Authorities that in the event any additional duty is payable by the Petitioner (after issuance of a show cause notice and adjudication thereof), the same would be paid by the Petitioner, subject to its right of Appeal. 15. Mr. Dada further submitted that considering there are favourable orders already passed in the case of the Petitioner inter alia holding that they are entitled to the partial exemption, there is absolutely no reason why the Lactulose imported by the Petitioner should be continued to be kept in the warehouse, and that too without issuing any Show Cause Notice to the Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act 1975, if specified in List 3 of the 2012 Notification, would be eligible for exemption as provided under Sr. No. 147 (A) set out by us above. The Commissioner was of the view that whether the Lactulose imported were Bulk Drugs and not formulations would have no effect on the eligibility for the benefit extended under the said Notification. This order of the Commissioner had attained finality. 19. After the GST regime came into force, a new Notification was issued, and which is the 2017 Notification. The relevant portion of the Table of the 2017 Notification is as under:- S.No. Chapter or Heading or sub-heading or tariff item Description of goods Standard rate Integrated Goods and Services Tax Condition No. 166 28,29 or 30 The following goods, namely:- (A) Drugs, medicines, diagnostic kits or equipment specified in List 3 5% - - (B) Bulk drugs used in the manufacture of drugs or medicines at (A) 5% - 9 "List 3 S. No. 166 of Table (1) …… (2) …… (22) Isoprenaline (23) Isoflurane (24) Lactulose (25) Lomustine 20. When one compares Sr. No. 147 of the 2012 Notification with Sr. No. 166 of the 2017 Notification, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We, therefore, see no reason that the present consignment [of Lactulose] imported by the Petitioner should be withheld and the Petitioner should incur costs of warehousing the same. In these circumstances, it would be unjust and inequitable that the Lactulose imported by the Petitioner, and which are in the nature of life saving drugs, continue to be in the warehouse pending the adjudication of a Show Cause Notice proposed to be issued to the Petitioner. 23. In view of the foregoing discussion, we allow the above Petition in terms of prayer clause (a) which reads thus:- "(a) that this Hon'ble Court be pleased to issue a Writ of Mandamus or a writ in the nature of Mandamus or any other writ, order or direction under Article 226 of the Constitution of India ordering and directing the Respondents, their officers and subordinates to forthwith assess the Bills of Entry Nos. 7058399, 7070581 and 7070003 all dated 05-12-2024 with benefit of partial exemption from Customs duty under Sr. No. 166 (A) of Notification No. 50/2017 dated 30.06.2017 read with Sr. No. 24 of List 3 thereof and on payment of IGST at 5% under Sr. No. 180 of Schedule I of Notification No. 1/2017-IGST-Rate dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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