9911796707
TMI Blog1985 (11) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... it was undisputed that such preparations were not capable of being consumed as ordinary alcoholic beverages. The High Court was, therefore, right in holding that these medicinal preparations were dutiable under Item 1. Both these firms had their offices in the same premises and under the partnership agreement the sons of the original First Appellant and the other two Appellants were to share only in the profits of Messrs M.B. Bhavsar & Sons but not to be liable for any losses. These two firms, therefore, cannot be said to be at arm's length or independent parties and the prices at which the medicinal preparations were supplied by Bhavsar Chemical Works to Messrs M.B. Bhavsar & Sons cannot be taken to be the real value of the said prepar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of Duty 1 2 3 1. Medicinal preparations being patent or proprietary medicines containing alcohol and which are not capable of being consumed as ordinary alcoholic beverages. Ten per cent ad volorem 3. There is no dispute that the ointments and liniments manufactured by the said firm were medicinal preparations being patent or proprietary medicines and contained alcohol. What was, however, contended was that for such medicinal preparations to fall under Item 1 they must contain alcohol in "a free and full state", that is to say, that alcohol must exist in such medicinal preparations in liquid form and that as the medicinal preparations in question were in semi-solid form they could not fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid preparations fell under Item 1 or not. These preparations were patent or proprietary medicines which contained alcohol and it was undisputed that such preparations were not capable of being consumed as ordinary alcoholic beverages. The High Court was, therefore, right in holding that these medicinal preparations were dutiable under Item 1. 5. The next contention of the Appellants, which was also negatived by the High Court, was that in determining the value of the medicinal preparations for the purpose of levying excise duty thereon the authorities erred in taking the wholesale price of the said preparations and not the price at which these preparations were supplied by the said firm to their chief distributor Messrs M.B. Bhavsar S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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