TMI Blog2004 (5) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of the Drugs (Prices Control) Order, 1987. Hence, expression "formulation" is only with reference to a medicine processed out of bulk drug. Therefore, when the ingredient used by the appellant, namely, Menthol IP, in the manufacture of tooth paste, powder and shaving cream is not in the use of any formulation which is a medicine processed out of, or containing one or more bulk drugs, the view taken by the Tribunal that assessee are not entitled for the benefit of Notification cannot be assailed. However, so far as the application of Section 11 for the purpose of levy of penalty is concerned, it is not clear as to whether the law is absolutely clear on the matter or not and the authorities also had to issue clarifications from time t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. Description of the Goods Rate of Duty 1. Bulk drugs (including salts, easters and derivatives, if any) specified under the First Schedule to the Drugs (Price Control) Order, 1987, as amended from time to time NIL 2. Other bulk drugs 5% ad valorem 3. Medicinal grade oxygen NIL 4. Medicinal grade Hydroxgen Peroxide NIL 5. Anaesthetics NIL Explanation. - In this notification, the expression "bulk drugs" shall have the same meaning assigned to it in the Drugs (Prices Control) Order, 1987." The Notification provides that the expression "Bulk drugs" shall have the same meaning assigned to it in the Drugs (Prices Control) Order, 1987. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Collector ultimately decided that the appellant was liable to pay differential demand of excise duty and also imposed penalty of Rs. 2 lakhs. 3.The matter was carried in appeal to the Customs, Excise Gold (Control) Appellate Tribunal (hereinafter referred to as the Tribunal) which dismissed the appeal on the basis that Menthol cleared by the appellant is not used as such, or as an ingredient in any formulation as provided under the Drugs and Cosmetics Act, 1940 and, therefore, the appellant was not entitled for the benefit of Notification No. 31/88-C.E. dated 1-3-1988. 4.The basis upon which the Tribunal proceeded is that as per the definition of "bulk drug", the substance mentioned in the definition must be used as such, or as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the attention of the Court was drawn to the same as is set out in the Notification No. 31/88-C.E. dated 1-3-1988 or not. 7.In the present cases, we will have to consider the expression "bulk drug" as specified under First Schedule to the Drugs (Prices Control) Order, 1987. In Explanation after the Table in the Notification No. 31/88-C.E. dated 1-3-1988 it is clearly set out that the expression "bulk drugs" shall have the same meaning assigned to it in the Drugs (Prices Control) Order, 1987. It is clear that substance has to be used as such, or as an ingredient in any formulation in terms of the Drugs (Prices Control) Order, 1987. Further, the expression "formulation" has also been defined in the following terms" - "a medicine proces ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
