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2015 (6) TMI 13 - AT - CustomsDenial of benefit of exemption on the ground of not using the goods as per intended purpose - Import of raw materials for manufacturing of life saving medicines, namely, "insulin injection" - Revenue contends that assessee are using 5 gms from each consignment for quality control test as samples and for testing purposes are not used in the manufacture of final products, hence the quantity is not used for the intended purposes as per Notification No. 21/2002-Cus dated 01/03/2002 - Held that:- manufacturing of the final product as per Drugs and Cosmetics Act and Rules made thereunder cannot be undertaken unless the raw materials are tested for which sampling is undertaken in form of drawal of about 5 gms of raw material at starting stage of manufacturing activity. The purpose of the imported goods is for manufacturing of medicines which cannot take place unless the samples are drawn and tested - both the lower authorities are totally incorrect in passing the impugned orders and holding that the appellant is liable to pay differential Customs duty and not eligible for the exemption notification No. 21/2002-Cus. - Decided in favour of assessee.
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