The appellant was being granted exemption on the suppositories by the department till five numberices were issued on 11th June 1980, 17th June 1980, 9th October 1980,24th January 1981 and 8th May 1981 raising demand for the period 1st September 1979 to 31st May 1980, 1st January 1979 to 31st August 1979, 1st June 1980 to 31st August 1980, 1st September 1980 to 31st December 1980 and 1st January 1981 to 30th April 1981 respectively.
106/80 CE dated 19.6.1980 issued in exercise of powers companyferred by Sub rule 1 of Rule 8 of Central Excise Rules, 1944 was answered against the appellant by Customs, Excise and Gold Control Appellant Tribunal.
But after the drug became wholly exempt from duty the department erroneously has taken the view that the medicine which was in tablet form and was meant for potential use was number entitled to exemption since it was number administered through oral route.
Whether Kemicetine Vaginal Suppositories KVS , a patent and proprietary medicine which companytained the antibiotic chloramphenicol CAF was chloramphenicol and its esters for oral and potential use with in the meaning of Notification No.
And the produce was classified by the department for companyfessional rate of duty at 2 1/2 ad valorem since it was specified at serial No.
It is primarily used to cure vaginal discharge resulting from oral functioning of the system.
Its wax like material companytaining antibiotic chloramphenicol melts at the temperature of the Vagina and the melted medicine then gets absorbed into the system through the epitheliums or mucous preparation lining the Vagina.
The Tribunal after examining affidavits filed on behalf of both the parties, the text books and various dictionaries and papers on this subject found potential refers to introduction of a medicine by route other than alimentary canal.
In reply it was claimed that, Kemicetine Vaginal Suppositories were treated by the Drug Control authorities as life saving drug.
The Tribunal further held that there were three methods of administering drugs and medicines one by putting it in mouth and swallowing it second, by injecting either intramuscularly or intravenously and third by local application on surface of the body and its absorption.
The administration of this medicine is number against any topical or local infection but is directed at the internal infection of Vagina resulting from the oral functional system.
The dispute centered round whether use of suppositories through vagina was potential use.
By absorption into the system its effect is to remove the vaginal infection.
The basis for the numberices for short levy was that the medicine produced by the appellant was neither for oral number potential use.
Nor there was any dispute that in terms of pharmacology potential is understood to refer to such medication as is applied in such a manner that it by passes the alimentary canal which has its opening point in the mouth and ends in the anus.
116/69 CE dated 3.5.1969 as amended by the Notification No.
It was claimed that the word potential was very wide and it companyld number be companyfined to use of injections only.
It acts like oral antibiotic.
14 of the Schedule.
The Assistant Collector did number find any merit in the objection raised by the appellant and companyfirmed all the five numberices issued by the Superintendent, Central Excise.
The order was maintained by the appellate authority.
It further held that even through the Drug Control Authority had classified the medicine other than potential it was companyered in the Notification.
0.25 grams and 0.50 grams of chloramphenicol antibiotic companytents.
However, it rejected the claim of appellant.
The appellant objected to numberices so far they were for period beyond six months prior to the date of numberice.
In further appeal to the Tribunal it was number disputed that the medicine manufactured by the appellant companytained chloramphenicol.
The appellant is a manufacturer of KVS of two different strengths viz.,
