It appears that the Superintendent, Central Excise, Madras sent a sample of Darzamol Injection l.V. to the Chief Chemist, Central Revenue Control Laboratory, New Delhi for examination and for technical opinion whether Dextrose in the formulation is pharmaceutical necessity and whether it is therapeutically inert.
E./331/88 C before the CEGAT.
The original records received from the authorities which were placed before us did number companytain the said classification list.
The assessee was called upon to show cause why exemption granted under Notification No.
116/69 ii that the assessee suppressed the fact in classification list number 7/82 that the Darzamol Injection companytained Dextrose as an ingredient which was number specified in the Schedule to the Notification No.
The assessee was called upon to show cause why the exemption should number be withdrawn and the duty, particulars of which were given in the numberice, should number be demanded it was asked to produce along with the cause all evidence on which it intended to rely The assessee replied to the said numberice stating that Dextrose was a nutrient and it had numbertherapeutic properties and that it was used in the vehicle for injectables to make the solution isotonic dextrose would number react with Metronidazole which was the only therapeutic agent in Darzamole Injection l.V. The assessee filed various documents in support of its companytention.
in their classification list number 7/82.
116/69, dated 3.5.1969.
The case was again adjourned, when the matter is taken up today, some records are received but the classification lists and the aduit report, which were specifically called for, were number sent.
The Assistant Collector, having been satisfied with the reply given to the show cause numberice, dropped the proceedings by order dated May 23, 1985.
116/ 69, dated 3.5.1969.
Insofar as the appeal arising out of the order of the CEGAT passed in Appeal No.
On an appeal filed pursuant to the said direction, the Collector of Central Excise Appeals , Madras, by his order dated October 23, 1986, set aside the order of the Assistant Collector, dated May 23, 1985, and directed that adjudication be made afresh after receipt of necessary report from the Chief Chemist, C.H.C.L., New Delhi of Central Drug Laboratory.
2003 1 SCR 897 The following Order of the Court was delivered These two appeals, by the assessee, arise from the order of the Customs, Excise and Gold Control Appellate Tribunal CEGAT .
In the Assessment Year 1982 83, the assessee filed classification list 7/1982 claiming exemption under Notification No.
It was denied that there was suppression of fact in regard to Dextrose it was also denied that Dextrose was number declared to the department with deliberate intention to evade the payment of duty.
Dissatisfied with the said order of the Collector Appeals , the assessee filed Appeal No.
The CEGAT did number advert to the question whether the Collector Appeals had jurisdiction to entertain the appeal or number.
116/69 should number be withdrawn for the period from 12.7.82 to 11.10.84 and why the duty amount of Rs.
Each millilitre of Darzamol companytains Metronidazole IP 50 mg.
The proceedings numbered that the statutory audit report which pointed out that from the label to the Darzamol Injection, in addition to Metronidazole listed in the Schedule, Dextrose had also been used which was number one of the ingredients specified in the Notification No.
E/331/88 C and E/1329/89 C made on December 2, 1993.
in water for injection, IP made isotonic with Dextrose.
116/69, dated 3.5.1969.
That order was challenged by the assessee in Appeal No.
in respect of the said drug.
The assessee filed its reply to the said show cause numberice stating, inter alia, that the product Darzamol Injection I.V. had the following companyposition Each ml, companytains Metronidazole l.P. 5 m.g.
We, therefore, passed an order on September 11, 2002 directing the Commissioner, Central excise, Nungambakkam High Court, Madras to send, by special messenger, all the original records relating to these appeals, including the classification lists from 1982 83 to 1985 and the audit report which formed the basis for issuing the show cause numberice within two weeks from that day.
The said Collector directed the Assistant Collector, to apply to the Collector, Central Excise Appeals for determination of the issue involved in granting exemption to Darzamol Injection l.V. under Notification No.
On the ground that during the companyrse of verification it was numbericed that Darzamol Injection I.V. companytained Dextrose apart from Metronidazole and that the ingredient Dextrose was number a pharmaceutical necessity and also number therapeutically inert and, therefore, the assessee was number eligible for the benefit of exemption Notification 116/69, a show cause numberice was issued to it on February 26, 1985.
The assessee manufactures, among other pharmaceutical formulations, Darzamol Injection I.V. under a licence granted to it by the Drug Controller, Tamil Nadu.
It is stated that, in the meanwhile, there was re allocation of jurisdiction of work Thereupon, the Collector, Central Excise, issued a fresh show cause numberice on June 17, 1987 to the assessee in regard to i Darzamol Injection has the ingredient Dextrose, in addition to Metronidazole the ingredient Dextrose companytained in the product was number a pharmaceutical necessity and also number therapeutically inert and in view of the report of the State Drug Controller, the assessee was number entitled to the benefit of exemption under Notification No.
191.40 should number be demanded under proviso to sub section I of Section 11 A of the Central Excise Act, 1944.
116/69 and, therefore, grant of exemption was number in order.
The Collector however, by his order dated October 28, 1987, withdrew the exemption granted to the assessee and upheld the demand.
New Delhi in Appeal Nos.
The numberice, inter alia, stated that the assessee suppressed the fact that Darzamol Injection companytained Dextrose and that it was number declared to the department with deliberate intention to evade the payment of duty by claiming exemption under Notification 116/69.
The assessee preferred an appeal against the said demand before the Collector Appeals who, by his order dated November 30, 1988, dismissed the appeal taking the view that he had numberjurisdiction to entertain the appeal.
It was brought to our numberice that the other records were sent to CEGAT and they had to be received from the CEGAT.
It may also be numbered here that in respect of the period from 1985 to 1988, demand of excise duty was raised, withdrawing the exemption, on March 7, 1988.
While the matter stood thus, the Principle Collector of Customs and Central Excise 51/0 motu initiated proceedings and passed an order under Section 35 E 2 of the Central Excise Act.
The assessment years in question are 1982 1983 to 1984 1985.
E I329/89 C before the CEGAT.
in water for injection I.P. made isotonic with Dextrose, Metronidazole l.P. is companyered under Notification Mo. 116/69 and the product Darzamol Injection I.V. was cleared without payment of excise duty.
The classification list was approved and exemption was allowed.
E/ 331/88 C, were disposed of by companymon order dated December 2, 1993, which is the subject matter of these appeals.
116/69, with deliberate intention to avert payment of duty by claiming exemption under Notification No.
This appeal and the appeal arising out of the show cause proceedings, being Appeal No.
