1985 (11) TMI 55

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..... under sub-clause (b) of clause (1) of Article 133 of the Constitution of India, prior to the amendment of that clause by the Constitution (Thirtieth Amendment) Act, 1972, against the judgment and order dated June 26, 1970, of that High Court in a writ petition under Article 226 of the Constitution filed by the original First Appellant and his two brothers, Appellants Nos. 2 and 3. 2.  The s .....

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..... f Duty 1 2 3 1. Medicinal preparations being patent or proprietary medicines containing alcohol and which are not capable of being consumed as ordinary alcoholic beverages. Ten per cent ad volorem 3.  There is no dispute that the ointments and liniments manufactured by the said firm were medicinal preparations being patent or proprietary medicines and contained alcohol. What was, howe .....

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..... uch preparation must be in liquid form. The determinative factor is whether the medicinal preparation is capable of being consumed as ordinary alcoholic beverage or not and not whether it is in semi-solid or liquid form. Obviously, a semi-solid preparation cannot be consumed as ordinary alcoholic beverage, though it maybe possible that if it is dissolved, it may be so consumed, as to which we, how .....

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..... consumed as ordinary alcoholic beverages. The High Court was, therefore, right in holding that these medicinal preparations were dutiable under Item 1. 5.  The next contention of the Appellants, which was also negatived by the High Court, was that in determining the value of the medicinal preparations for the purpose of levying excise duty thereon the authorities erred in taking the wholesal .....

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..... ther two Appellants were to share only in the profits of Messrs M.B. Bhavsar & Sons but not to be liable for any losses. These two firms, therefore, cannot be said to be at arm's length or independent parties and the prices at which the medicinal preparations were supplied by Bhavsar Chemical Works to Messrs M.B. Bhavsar & Sons cannot be taken to be the real value of the said preparations. The Hig .....

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