Listed bulk drug exemption: specifically named items in the drugs list qualify for the more beneficial exemption entry.

Imported Ursodeoxycholic Acid, though a bulk drug, was expressly named in List 3 attached to the exemption entry for drugs or medicines, so it fell within that specific and more beneficial entry rather than being confined to the general bulk drug entry. The same interpretation applied to the corresponding central excise notification. Where two exemption entries may apply, the assessee is entitled to the more beneficial one, and a listed bulk drug can be treated as a drug for purposes of the list-based exemption. The revenue challenge therefore failed, and the goods remained eligible under the drugs entries.

---

---

Issues: Whether imported Ursodeoxycholic Acid, being a bulk drug and a listed item in List 3 to the customs notification, was entitled to classification under the more beneficial exemption entry for drugs at Sl. No. 147(A) and the corresponding central excise entry at Sl. No. 108(A), rather than the bulk drug entries.

Analysis: The notification separately provided for drugs or medicines specified in the relevant list and for bulk drugs used in their manufacture. The imported goods were specifically named in List 3 appended to the notification. Once a bulk drug is specifically enumerated in the list attached to the drugs entry, it falls within the scope of that drugs entry. The same reasoning applied to the corresponding excise notification. The prior tribunal view had already held that where two entries may apply, the assessee is entitled to the more beneficial exemption entry, and that a listed bulk drug can be treated as a drug for the purpose of the list-based exemption.

Conclusion: The goods were correctly eligible for the exemption under the drugs entries at Sl. No. 147(A) and Sl. No. 108(A), and not restricted to the bulk drug entries. The revenue challenge failed.

Ratio Decidendi: Where a bulk drug is expressly specified in the list attached to an exemption entry for drugs or medicines, it is entitled to the benefit of that specific, more beneficial entry rather than being confined to the general bulk drug entry.

---