2002 (2) TMI 1075 - AT - Central Excise

Appellate Tribunal allows duty exemption for drugs and medicines under specific entry

The Appellate Tribunal CEGAT, Mumbai ruled in favor of the respondent, allowing them to continue availing duty exemption for drugs and medicines under a ... Exemption under Notification No. 104/82 Entry 21 - scope of the terms 'medicine' and 'pharmaceutical' - classification under Item No. 68 of the Tariff - overlap between 'medicine' and 'pharmaceutical'Scope of the terms 'medicine' and 'pharmaceutical' - exemption under Notification No. 104/82 Entry 21 - classification under Item No. 68 of the Tariff - Whether the goods manufactured by the respondent fall within the scope of the term 'medicine' in Entry 21 of the Schedule to Notification No. 104/82 and thus remain exempt despite omission of the word 'pharmaceuticals' from the entry. - HELD THAT: - The appellant contended that the respondent's products were not bulk drugs but pharmaceutical preparations and therefore not entitled to exemption. The Tribunal found no explanatory definition of 'medicine' or 'pharmaceutical' in the notification and observed substantial overlap between the two terms. The department produced no material to establish a clear distinction showing the respondent's products lay outside the meaning of 'medicine'. Reliance on the Short Oxford Dictionary definition of 'pharmaceutical' (relating to preparation or sale of medicinal drugs) was held to demonstrate the overlapping scope. In the absence of any persuasive material to differentiate the respondent's products from 'medicines' for the purposes of Entry 21, the Tribunal declined to accept the department's proposition and upheld the Commissioner (Appeals) conclusion that the goods were covered by the term 'medicine' in the notification. [Paras 3, 4]The Tribunal dismissed the departmental appeal and upheld the exemption under Entry 21 as applicable to the respondent's goods.Final Conclusion: The departmental appeal was dismissed; the goods manufactured by the respondent were held to be covered by the term 'medicine' in Entry 21 of Notification No. 104/82 and continue to enjoy the exemption. The Appellate Tribunal CEGAT, Mumbai ruled that the respondent could continue to avail duty exemption for drugs and medicines under a specific entry of a notification. The department's appeal was dismissed as there was no clear distinction between medicines and pharmaceuticals in the notification.