Life-saving drug exemption applied to polymyxin B sulphate; late claim did not defeat entitlement under the notification.

Duty-free clearance under Notification No. 11/97 was available where the imported substance itself was listed as a life-saving drug in entry 43(A), even though it was also used in manufacture of neosporin. The exemption under entry 43(B) covered bulk drugs used in making life-saving drugs or medicines listed in entry 43(A), and polymyxin B sulphate was specifically named in List 2. The failure to claim the benefit at the time of import did not extinguish entitlement when the goods otherwise satisfied the notification conditions.

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Issues: Whether polymyxin B sulphate imported for manufacture of neosporin was eligible for duty-free clearance under Notification No. 11/97 on the footing that the goods themselves were covered as a life-saving drug.

Analysis: The exemption under entry 43(B) applied to bulk drugs used in the manufacture of life-saving drugs or medicines listed in entry 43(A). Although the imported substance was used for neosporin, which was not itself shown to fall within entry 43(A), polymyxin B sulphate was independently listed as a life-saving drug in entry 43(A), with List 2 specifically naming it. The Court further held that failure to claim the benefit at the time of import did not extinguish the entitlement where the goods were otherwise covered by the notification.

Conclusion: The exemption was available to the imported goods and the assessee succeeded on the issue.

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