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2023 (8) TMI 536 - SC ORDERExemption from payment of excise duty given to intravenous fluids - whether benefit allowed when product used only for the purpose of replenishment and not for any other purpose? - benefit of Notification dated 01.03.2000 (Notification No. 6/2000) and the subsequent Notification dated 01.03.2001 (Notification No. 3/2001). HELD THAT:- It can only be said that intravenous fluids or solutions are made of chemicals, such as, sugar, electrolytes or amino acids, and are necessary for the circulatory system to assimilate them and for the purpose of maintaining the electrolyte balance in the circulatory system of the body, whether of a human or an animal. The object and purpose of the grant of such an exemption is to ensure that these products are available at a reduced price and that therefore, they can be easily accessible to be used for human beings or animals readily as it is in the nature of a life-saving product - sufficient material was produced by the Assessees in response to the show cause notice as well as at the time of being heard before the order of the Commissioner was passed in order to demonstrate the nature of the subject product. No doubt, the order in original is a lengthy one and takes into consideration the material which was produced by the respondents/Assessees as well as the material that was produced by the Revenue. However, there appears to be a mis-impression in the mind of the Authority while considering whether, the Assessees herein were entitled to the benefit of exemption or not. The simple test that ought to have been followed was to note the composition of the product in question and not as to whether it was being used for treatment of any particular disease. A reading of the license issued to the Assessees, makes it apparent that the composition of the product predominantly consists of Glucose (sugar) and electrolyte (minerals) which are essentially for the purpose of replenishment, not necessarily only used at the time of treatment for any particular disease but also as a preventive measure. Mere addition of Boric Acid and Chlorocresol, that too in minimal proportion, would not alter the character of the product. The product retains its essential purpose of replenishment; and not partake the character of a medicine used only for the treatment of any particular disease. The CESTAT was justified in holding that the respondents/Assessees were entitled to the benefit of exemption as per the Notifications dated 01.03.2000 and 01.03.2001 - Appeal dismissed.
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