TMI Blog1982 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioners contention is that Methyl Aceto Acetate is a drug intermediate and, therefore, should be exempted from payment of countervailing duty by virtue of this notification. The Assistant Collector concerned rejected the petitioners claim on the ground that Methyl Aceto Acetate did not find use exclusively as a drug intermediate. The petitioners thereupon went in appeal and the Appellate Collector rejected the claim more or less on the same ground. 3. The petitioners are now in revision before the Government. In this connection they were given two opportunities of personal hearing, once on 4-8-81 before the Bench comprising S/Shri D.N. Mehta, Additional Secretary and K.L. Rekhi, Joint Secretary to the Government of India and again on 19-7-82 before a larger Bench comprising of S/Shri V.B. Eswaran, Secretary, D N. Mehta, Additional Secretary and K.L. Rekhi, Joint Secretary to the Government of India. Before the Second hearing a copy of the Chief Chemist s opinion obtained by the Government in the matter which forms Annexure B to this order was also furnished to the petitioners and their Advocate in order to enable them to explain their view point on the opinion given by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aswamy contended that the petitioners are importing this item against an 11C licence permitting importation of raw materials required for the manufacture of Analgin only and the Joint Director of the State Government s Drug Control Authorities has already certified that Aceto Acetic Ester is a drug intermediate in the manufacture of Analgin. lt may be true that this chemical may find other usage also but so long as it was being used be the petitioners as a drug intermediate, the benefit of exemption notification could not be denied to them in law. Both the import licence issued to Shasun Chemicals (M) Pvt. and S S.T. (Small Scale Industry) certificate clearly show that the petitioner was manufacturing Analgin-I.P. only and therefore, the question of Methyl Aceto Acetate being put to some other uses did not arise. (iii) Referring to the flow sheet and the process of manufacture, it was urged that the petitioners are starting the manufacture with aniline and ending up with analgin through various steps and that aniline itself has been recognised as a drug intermediate by the Government on an earlier occasion, vide Government of India Order No. 642B/ 1981 in the case of Hindustan O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and would be entitled to the benefit of the relevant exemption notification. According to him, any number of steps could be involved before a drug intermediate was converted into a drug. (vi) Shri Ramaswamy pleaded that the theory of structural relationship envisaged in the opinion of the Chief Chemist was not justified. In this context, he drew the attention of the Government to Notification No. 64-Cus., dated 6-3-79 wherein the Government has specified 26 drug intermediate for the purpose of exemption notification to point out that this theory of structural relationship will not be valid in respect of items like Furfuraldehyde (Sl. No. 13) Acrylonitrile (Sl. No. 12) of the Notification. He referred to structure of certain drugs which are manufactured using this raw material to bring home this point that the final structure of the drug manufactured bears no relationship to this item though they have been recognised as a drug intermediate. He accordingly contended that the Chief Chemist s opinion should not be relied upon in holding the case against the client. Shri Ramaswamy further stated that he should be afforded all opportunity to cross-examine the Chief Chemist in case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of aniline and would thus appear to be in the nature of primary raw material rather than a drug intermediate. In this connection, Government observe that it is well settled in law that where the words in a taxing statute are not defined and they have to be construed by implications or by indirect manner, the words had to be construed in their popular sense, that is the sense in which the people conversant in the trade understand them. This interpretation finds affirmation in the pronouncements of various courts on this issue. In M M.T.C. v.. Union of India. AIR 1972 SC 2551 the court observed- apart from all this it must be remembered that in interpreting items in a taxing statute resort should be had not to the scientific or technical meanings but to the meaning attached to them by those dealing in them in their commercial sense. Government thus observe that while it may be arguable that on a strict interpretation of the term drug intermediate in the normally accepted scientific and technical sense Methyl Aceto Acetic Ester may not qualify as a drug intermediate, that interpretation will not hold ground while construing the term for commercial purpose and according ..... X X X X Extracts X X X X X X X X Extracts X X X X
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