9911796707
TMI Blog1986 (8) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ioners claim that Phenol USP is a basic drug or a pharmaceutical or a drug intermediate and in accordance with Notification No. 55/75 dated March 1, 1975 duty of excise is not leviable on the import of Phenol USP. The Assistant Collector of Customs did not accept the claim and levied countervailing duty at the rate of 8% which is the rate specified under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944. The order of assessment passed by the Assistant Collector has given rise to the filing of this petition on September 6, 1982 under Article 226 of the Constitution of India. 2. The point which arises for determination is whether the import of phenol USP is entitled to advantage of Notification No. 55/75 dated Marc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmacopoeia. The item 'phenol' is described on page 381 of Pharmacopoeia of India, Volume I, Third Edition, 1985. In 1970 Edition at page 376, it is stated that Phenol is either in liquid or glycerin form. On page 359 of British Pharmacopoeia, 1973, the drug phenol has been described and recites that it is used as antiseptic, preservative and antipruritic. On page 611 of the United States Pharmacopoeia, Twentieth Edition, 1980, drug Phenol has been described and the perusal of the same indicates that Phenol is mixed with the fixed oil, mineral oil, or white petroleum for further usage. Dr. Kantawala submits, and in my judgment, with considerable merit that if phenol is included in Pharmaacopoeia of India, Britain and United States of America ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether a particular item is a drug intermediate or not was considered by the special Bench of CEGAT and the decision is reported in 1984 (17) Excise Law Times 185 (Trichem Laboratories, Bombay V/s. Collector of Customs, Bombay). The Tribunal took the view that there is no such thing as a drug intermediate because all substances having such uses find many more different uses. To demand predominent use, felt the Tribunal, is impracticable because even if there was any substance, there is no guarantee and the position would not change with the advance in science and technology. It was further held that the claim that drug intermediate is a penultimate substance from which a drug is obtained by simple process is too narrow an interpretat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic compound, either cyclic (derived from coal tar or petroleum products such as benzene, toluene, naphthalene, etc.) or acyclic (e.g. ethyl and methyl alcohol). These compounds may be considered as chemical stepping stones between the parent substance and the final product". It is difficult to appreciate what Shri Rege desires to convey by relying upon the dictionary meaning of the word "Intermediate". In my judgement, phenol USP must be treated as a drug because of its inclusion in Pharmacopoeia and as phenol USP can be used as an intermediate for manufacture of drugs, it can also be described as a drug intermediate. In my judgement, on the strength of the material produced by the petitioners, it is impossible to accede to the claim of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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