9911796707
TMI Blog1985 (3) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Tariff. Later on, the appellants filed two applications claiming refund of the additional duty collected from them on the ground that selenium dioxide was a drug intermediate covered by Central Excise Exemption Notification No. 55/75. By two separate orders, the Assistant Collector of Customs, Bombay, held that the imported substance was not a drug intermediate and the claims were not, therefore, tenable. The appellants filed two appeals against these orders which the Appellate Collector of Customs, Bombay, rejected by a consolidated order dated 19-1-1982. It is against this order that the appellants are now before us. 2. Originally, the appellants had filed a single revision application against the Appellate Collector's order. When t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants. It is urged that even though the imported substance is used as a reducing agent, it should be held to be eligible for duty exemption since it is used in the process of manufacture of the drug. 6. Appearing on behalf of the respondent, Shri Sundar Rajan, Departmental Representative, opposed the appeal placing reliance on Order No. 482/84-C dated 24-7-1984 in Appeal No. 1877/81-C filed by the present appellants. 7. We have considered the submissions of both sides. selenium dioxide, as seen from the Condensed Chemical Dictionary, 10th Edition, revised by Gessner G. Hawley, finds use in analysis (testing for alkaloids), as an oxidising agent, as an anti-oxident in lubricating oils and as a catalyst. From the diagram of the chemical re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. An intermediate, according to the Condensed Chemical Dictionary, is a chemical stepping stone between the parent substance and the final product. While the distinction between an intermediate and an end-product may not always be precise, a chemical to be called an intermediate must be a substance which is a precursor to the final drug-may be removed by a step or a few steps. Evidently, chemicals used to assist the reaction processes, such as reducing agents, catalysts, cannot be considered as intermediates." 10. The distinguishing feature between the case disposed of by Order No. 482/84-C and the present one is that while we were dealing with a reducing agent in the former case, we are dealing with an oxidising agent in the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present dispute. The second decision cited is of the Government of India in Shasun Chemicals Private Ltd., 1982 E.L.T. 786. The Government had taken the view that the expression "Drug intermediate" must be understood in the commercial sense for the purpose of exemption notification No. 55/75 and not in the scientific or technical sense. It is seen from the said order that the evidence placed before the revision authority showed that the chemical substance under consideration there was recognised as a drug intermediate in international trade parlance and the authority took the view that exemption should be extended to the substance only when it is used in the manufacture of drug and not otherwise. No such evidence has been placed befor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
