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TMI Blog2001 (12) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 7/95-C.E.]." 2.Under Notification 6/94-C.E., dated 1-3-94, the Central Government granted partial exemption from duty to certain goods specified in Column (3) of the Table annexed to the notification. S. No. 6 in the Table was "bulk drugs [other than bulk drugs specified under First Schedule to Drugs (Prices Control) Order, 1987 as amended from time to time"] coming under Chapters 28 and 29 of the Central Excise Tariff Act. Explanation given at the end of the notification provided that "for the purpose of this notification, the expression "bulk drugs" shall have the same meaning assigned to it in the Drugs (Prices Control) Order, 1987 and shall include their salts, esters or derivatives, if any". Appellants were entitled to the benefit of the above notification and the duty payable on the bulk drugs manufactured by them was 10% adv. There is no dispute that they are entitled to such concessional rate of duty under Notification No. 6/94. The above notification was amended by Notification No. 7/95-C.E., dated 9-2-95 whereby Sr. No. 6 and the entries relating thereto in the Table annexed to the Notification 6/94-C.E. were omitted along with the Explanation to that notification. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 6/94 its repeal is immaterial as far as implementation of the terms of Notification 6/94 is concerned. Learned Counsel for the appellant placed reliance on three decisions of the Supreme Court in support of his contention. In Ram Sarup v. Munshi & Ors. (AIR 1963 SC 553), the Supreme Court considered the effect of repeal of an Act on a second Act into which it had been incorporated. Section 15 of the Punjab Pre-emption Act, 1913 employed the words in respect of agricultural land which was defined to mean land as was defined in Punjab Alienation of Land Act of 1900. Later the Punjab Alienation of Land Act, 1900 was repealed. The Apex Court held that the repeal of the Punjab Alienation of Land Act of 1900 has no effect on the continued operation of the Pre-emption Act and the expression 'agricultural land' in the later Act has to be read as if the definition in the Alienation of Land Act had been bodily transported into it. The dictum laid down was that where the provisions of an Act are incorporated by reference in a later Act, the repeal of the earlier Act has, in general, no effect upon the construction or effect of the Act in which its provisions have been incorporated. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich provides that "for the purpose of this notification, the expression "bulk drugs" shall have the same meaning assigned to it in the Drugs (Prices Control) Order, 1987". At a time when the Drugs (Prices Control) Order, 1987 was repealed and its provisions are not available for examining the question whether the assessee's case would come under the definition of the expression "bulk drugs", no exemption can be claimed by the assessee. He also submits that in the matter of fiscal statute strict interpretation has to be given to the provisions and in support of the above contention he placed reliance on two decisions of the Tribunal, namely, Borosil Glass Works Ltd. v. CCE., Bombay [1998 (100) E.L.T. 120 (T) = 1998 (27) RLT 248] and CCE, New Delhi v. Avis Electronics Pvt. Ltd. [2000 (117) E.L.T. 571]. According to the Learned Departmental Representative the intention of the Revenue is very clear that it did not want to give the benefit of exemption to the bulk drugs cleared by the appellant for the period from 6-1-95 to 9-2-95 as it refused to grant the benefit under Section 11C. 9.Learned Departmental Representative placing reliance on two decisions of the Apex Court, namely, Coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of a notification under Section 8(1) of the Foreign Exchange Regulation Act. 10.In [1988 (38) E.L.T. 720 (S.C.) = AIR 1989 SC 222] the question that came up for consideration was whether the scope of the exemption available under Item 7 of the Third Schedule to the Kerala General Sales Tax Act, 1963 will vary according to the scope of the corresponding entry in the Schedule to the Central Excises and Salt Act, 1944 as amended by Finance Act, 1969 with effect from 1-4-69. The Supreme Court affirmed the decision or the Kerala High Court which had held that any amendment to 1944 Act would apply, from time to time, to the provisions of Kerala General Sales Tax Act. This view was taken by holding that two of the four exceptions to general principle laid down in State of M.P. v. M.V. Narasimhan (AIR 1975 SC 1835) would apply in the facts of the case. Exceptions applied are - (1) where the subsequent Act and the previous Act are supplemental to each other; and (2) where the amendment in the previous Act, if not imported into the subsequent Act also, would render the subsequent Act wholly unworkable and ineffectual. 11.The learned Counsel for the appellant submits that the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expression 'bulk drug' shall have the same meaning assigned to it in the Drugs (Prices Control) Order, 1987" Clause 2(a) of Drugs (Prices Control) Order, 1987 defined "bulk drug" as follows : "bulk drug" means any substance including pharmaceutical, chemical, biological or plant product or medicinal gas conforming to pharmacopoeial or other standards accepted under the Drugs and Cosmetics Act, 1940 (23 of 1940), which is used as such, or as an ingredient in any formulation." The same Explanation was followed in Notification Nos. 6/94-C.E. and 7/94-C.E. also. 13.Item No. 6 in the Table annexed to Notification 6/94-C.E. referred to bulk drugs [other than bulk drugs specified under First Schedule to Drugs (Prices Control) Order, 1987 as amended from time to time] and ad valorem duty at 10% was levied for the above goods. In Notification No. 7/94-C.E., dated 1-3-94 total exemption from duty was granted in respect of bulk drugs specified under the First Schedule to the Drugs (Prices Control) Order, 1987 as amended from time to time which was shown as Item 30. 14.On examination of the provisions contained in the notifications issued from time to time it can be seen that what was mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endment in the previous Act, it not imported into the subsequent Act also, would render the subsequent Act wholly unworkable and ineffectual; and (d) where the amendment of the previous Act, either expressly or by necessary intendment, applies the said provisions to the subsequent Act. We are not persuaded to hold that the facts of the present case would bring it under any of the four exceptions. 16.Apart from the above, as mentioned earlier in the scheme of the notifications issued from time to time granting total exemption to scheduled drugs and a lesser rate of duty to the drugs outside the schedule, we are of the view that during the inter-regnum period, namely, 6-1-95 to 8-2-95 such exemption cannot be denied to those drugs. It is relevant to note at this juncture that the bulk drugs which come under the First Schedule to the Drugs (Prices Control) Order are of great importance in connection with National Health Programme like National T.B. Eradication Programme, National Leprosy Eradication Programme, National Trachoma Control Programme and National Programme for Control of Blindness, Programme for Prevention of Dehydration under ORT, National Malaria Eradication Programme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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