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2017 (9) TMI 877 - HC - Central ExciseClassification of goods - whether formulations containing less than 135 mgs. i.e. 65 mgs of Dextropropoxyphene can be classified as 'Narcotic Drug' or 'Narcotic' within the meaning of Section 2(h) of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 and liable to State Excise Duty? - Held that: - The term “Narcotic Drug” or “Narcotic” with which we are concerned with in the present case has been defined under Section 2(h) of the M & T P Act to mean a substance which is coca leaf, or coca derivative, or opium, or derivative of opium, or Indian hemp and shall include any other substance, capable of causing or producing in human beings dependence, tolerance and withdrawal syndromes and which the Central Government may, by notification in the Official Gazette, declare to be a Narcotic Drug or Narcotic - The plain reading of item No. 86 in the notification states that a Narcotic Drug or Narcotic would include only formulations containing more than 135 mgs of Dextropropoxyphene per dosage unit.n declared as Narcotic Drug or Narcotic - In the present case admittedly the subject formulations contain less than 135 mgs i.e. 65 mgs of Dextropropoxyphene and hence cannot be classified as a Narcotic drug or Narcotic in view of the said Notification. The subject formulations of the Petitioners containing less than 135 mgs i.e. 65 mgs of Dextropropoxyphene are excluded from being classified as a Narcotic Drug under the Section 2(h) of the M & T P Act. We find that the view taken by the Respondents viz. that the Petitioners are liable to the State Excise Duty under the M & T P Act is thoroughly untenable - the impugned demand notices quashed. Petition allowed - decided in favor of petitioner.
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