Bulk drug exemption under excise notification sustained where Martindale Extra Pharmacopoeia qualified as an official pharmacopoeia.

Bulk drugs were held eligible for exemption under Notification No. 8/96-C.E. and the concessional 10% ad valorem duty because Martindale Extra Pharmacopoeia was treated as an official pharmacopoeia of Great Britain, having been issued by the Royal Pharmaceutical Society with statutory and regulatory character. The assessee was also entitled to rely on the explanatory note in Trade Notice No. 24/95, which preserved the earlier concession for other bulk drugs under the predecessor notification. As the later notification retained the same definition of bulk drugs, the concession was found to continue, and the Revenue's challenge failed.

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Issues: Whether the respondent was entitled to exemption under Notification No. 8/96-C.E. and the concessional rate of duty at 10% ad valorem in respect of the bulk drugs in question.

Analysis: The dispute turned on whether Martindale Extra Pharmacopoeia could be treated as an official pharmacopoeia of Great Britain for the purpose of the notification. The publication was held to be issued by the Royal Pharmaceutical Society, which has statutory and regulatory character, and the publication was treated as an official pharmacopoeia. The respondent was also held entitled to rely on the explanatory note in Trade Notice No. 24/95, which continued the earlier concessional duty for other bulk drugs under the predecessor notification. The later notification retained the same definition of bulk drugs, and the same concession was found to continue.

Conclusion: The respondent was entitled to the exemption and concessional duty, and the Revenue's challenge failed.

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