Central Excise - Excise duty exemption to formulations containing Penicillin + Streptomycin under Notification No. 29/88-C.E., dated 1-3-1988 - Clarification regarding - Central Excise - 34/90-CX.3

Central Excise - Excise duty exemption to formulations containing Penicillin + Streptomycin under Notification No. 29/88-C.E., dated 1-3-1988 - Clarification regarding Circular No. 34/90-CX.3 Dated 11-7-1990 [From F. No. 103/7/90-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Excise duty exemption to formulations containing Penicillin + Streptomycin under Notification No. 29/88-C.E., dated 1-3-1988 - Clarification regarding. Doubts have been expressed regarding levy of Central Excise duty on Penicillin + Streptomycin formulations inasmuch as some of the units have been allowed the benefit of excise duty exemption as envisaged in Notification No. 29/88-C.E., dated 1-3-1988 in respect of the subject goods have been assessed to duty of excise. 2. The matter has been examined by the Board. It is observed that in terms of Notification No. 29/88-C.E., dated 1-3-1988, all formulations based on the list of bulk drugs specified in the First Schedule to Drugs (Price Control) Order, 1987, are exempt from payment of Central Excise Duty. Single ingredient formulations based on the list of bulk drugs specified in the Second Schedule to DPCO, 1987 attract basic excise duty of 10% ad valorem. Streptomycin figures at Sl.No. 1 under the Heading of "National T.B. Eradication Programme" in the First Schedule to the said order whereas "Pencillin" is specified as Sl. No. 95 of Schedule II of the said Order. Therefore, in terms of Notification No. 29/88-C.E., dated 1-3-1988 the rate of duty will be as follows :- (i) there is no excise duty on Streptomycin; (ii) Pencillin Injections are required to pay basic excise duty of 10% ad valorem; (iii) Formulations containing Pencillin + Streptomycin will not be covered by the scope of Notification No. 29/88-C.E., dated 1-3-1988 at all and will have to discharge the statutory rate of duty (@ 15% ad valorem. 3. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 4. All pending assessments or the assessments finalised otherwise may be finalised or revised and remedial action, if necessary, be taken under intimation to the Board, on the above basis.