TMI Blog2002 (8) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the assessees demanding duty rightly invoked the extended period contained in the proviso of sub-section (1) of section 11A of the Act, confirmed the demand for duty and imposed penalties on the assessees as well as Manish J. Jain, a partner in Micro Orgo Chem and Shailesh J. Sanghvi, Manager of Fine Chemicals. 2. Entry 6 of the Table to notification 6/94 exempted bulk drugs other than those specified in entry 1 above from duty in excess of 10% ad valorem. The explanation to it defines "bulk drugs" to mean "any pharmaceutical, chemical, biological or plant product including its salts, esters, stereo-isomers and derivatives, conforming to pharmacopoeial or other standards specified in the Second Schedule to the Drugs and Cosmetics Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pharmacopoeia for the time being in force was to apply and if those standards were specified in addition, the standards specified in that edition immediately preceded. Until 31-12-1996, roxithromycin was not included in the official pharmacopoeia of any other country. This is the basis for denying the exemption. 4. The contention of the counsel in this regard is this. Roxithromycin figures in the pharmacopoeia of the European Community published from 1-1-1997, and the standards of purity and strength that were prescribed in that pharmacopoeia. The show cause notices issued to the assessees do not demand duty for the period from 1-1-1997 onwards and the exemption has been granted from this date onwards. The erythromycin that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its therefore the denial of the exemption on this ground was as in order. 6. It is next contended that the demands are barred by limitation. The demands issued to each of the assessees were issued beyond six months from the relevant date and invoked the extended period of limitation contained in the proviso to sub-section (1) of section 11A of the Act alleging that the assessee had suppressed from the department in the classification lists that it filed for the product, the fact that the goods were bulk drugs. The Commissioner has dismissed the plea of limitation that was raised before him by taking resort to the provisions of Sections 97 and 110 of the Finance Act. Section 97 of the Finance Act, amended the provisions of Section 11A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y after all would have been aware that it is only bulk drugs which were entitled to exemption and that both in terms of the exemption granted with reference to the Drugs (Prices Control) Act, 1987, and other exemptions granted directly with reference to the Drugs and Cosmetics Act, 1940, the substance could not be a drug unless it complies with the standards. Despite this, they granted exemption to one assessee for seven years and the other for four. We do not think that the department can now turn around and invoke the extended period only on the ground that the appellant wrongly declared the product as bulk drug. The information on the basis of which the department subsequently denied the exemption, with the standards of identity, purity, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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