The Notification provides that the expression Bulk drugs shall have the same meaning assigned to it in the Drugs Prices Control Order, 1987.
The Drugs Prices Control Order, 1987 defines bulk drug as under Bulk Drug means any substance including pharmaceutical, chemical, biological or plant product or medicinal gas companyforming 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.
Returns also were filed in appropriate forms and goods were also cleared.
Thereafter, the Collector, Central Excise, Meerut, issued a show cause numberice alleging that the appellant had wrongly availed of the benefit of the Notification No.
2 lakhs.
31/88 dated 1.3.1988 during the period from April 1988 to December 1988 and January 1990 to 5 April 1990.
The matter was carried in appeal to the Custom, Excise Gold Control Appellate Tribunal hereinafter referred to as the Tribunal which dismissed the appeal on the basis that Menthol cleared by the appellant is number used as such, or as an ingredient in any formulation as provided under the Drugs and Cosmetics Act, 1940 and, therefore, the appellant was number entitled for the benefit of Notification No.
The licence enabled the appellant to manufacture Menthol IP, Menthol BP, Menthol U.S.P. and Mentha Oil IP.
After hearing the appellant and examining the replies filed by the appellant to the show cause numberice, the Collector ultimately decided that the appellant was liable to pay differential demand of excise duty and also imposed penalty of Rs.
The appellant claimed that he had been manufacturing and supplying Menthol as falling under the expression bulk drugs as set out in the Notification referred to above and filed classification list.
The appellant was availing of the exemption till 27.6.1990.
On 1.3.1988 a numberification No.
On 27.6.1990 the Assistant Collector, Central Excise, Rampur proposed that the appellant should pay the excise duty without availing of the benefit of the exemption referred to earlier and issued a show cause numberice proposing imposition of penalty.
Objections were raised by the appellant that the Assistant Collector was number companypetent to issue a show cause numberice claiming excise duty for the past period exceeding six months.
31/88 CE dated 1.3.1988.
THE TABLE Description of the Goods Rate of Duty Bulk drugs including salts, easters and derivatives, if any specified under the First Schedule to the Drugs Price Control Order, 1987, as amended from time to time NIL Other bulk drugs 5 ad valorem Medicinal grade oxygen NIL Medicinal grade Hydroxgen Peroxide NIL Anaesthetics NIL Explanation In this numberification, the expression bulk drugs shall have the same meaning assigned to it in the Drugs Prices Control Order, 1987.
RAJENDRA BABU, CJI.
The appellant before us is a companypany engaged in the manufacture of Menthol IP, Menthol BP, Menthol U.S.P. and Mentha Oil IP.
The appellant was carrying on its activities under a licence granted by the drug companytrol authorities companystituted under the Drugs and Cosmetic Act, 1940.
31/88 CE was issued by the Department which reads as under In exercise of the powers companyferred by sub rule 1 of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts goods of the description specified in companyumn 2 of the Table thereto annexed and falling under Chapter 28, 29 or 30 as the case may be, of the Schedule to the Central Excise Tariff Act, 1985 5 of 1985 , from so much of the duty of excise leviable thereon under the said Schedule as is in excess of the amount calculated at the rate specified in the companyresponding entry in companyumn 3 of the said Table.
