Tribunal affirms product eligibility for exemption under notification 4/2006 for Natural Micronised Progesterone

The Tribunal upheld the impugned order and dismissed the revenue's appeal, affirming the eligibility of the appellant's product for exemption under notification no. 4/2006 for Natural Micronised Progesterone. The Tribunal emphasized that the product, despite containing additional excipients, was marketed and identified as Natural Micronised Progesterone, meeting the criteria for exemption. The judgment was delivered on 31/1/18.

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Issues:
Claim of exemption under notification no. 4/2006 for Natural Micronised Progesterone tablet containing multiple ingredients.

Analysis:
The case involved a dispute regarding the eligibility of the appellant's product for exemption under notification no. 4/2006 for Natural Micronised Progesterone. The department contended that the product did not qualify for exemption as it consisted of various ingredients in addition to Natural Micronised Progesterone. The revenue's representative argued that the product did not align with the specific requirements listed in the exemption notification. On the other hand, the respondent's counsel supported the impugned order granting exemption to the product.

Upon careful consideration, the Tribunal observed that the exemption covered both drugs and medicines, with drugs typically containing a single basic ingredient. Medicines, however, often included additional components such as excipients. The Tribunal emphasized that the addition of excipients did not alter the essential character of a medicine derived from a basic drug. In this case, the product was marketed as "Sugest" and, upon examination, was found to be Natural Micronised Progesterone despite the presence of other excipients.

The Tribunal noted that the product's packaging clearly indicated it was Natural Micronised Progesterone, making it eligible for exemption under Sr. No. 58 of the relevant notification. Referring to the order of the Commissioner (Appeals), the Tribunal highlighted the importance of interpreting government policy broadly to achieve its intended purpose. The Tribunal agreed with the Commissioner's findings, which emphasized the long-standing presence of the product in the market and criticized the lower authority's misconceptions and arbitrary penalty imposition without proper justification.

Ultimately, the Tribunal upheld the impugned order and dismissed the revenue's appeal, affirming the eligibility of the appellant's product for exemption under notification no. 4/2006 for Natural Micronised Progesterone. The judgment was pronounced in court on 31/1/18.

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