Exemption for bulk drugs used in Intravenous Amino Acids manufacture survives despite glucose or sorbitol in the finished product.

Bulk drugs imported for manufacture of Intravenous Amino Acids qualified for exemption under Notification No. 17/2001-Cus. because the relevant condition was use in producing a product specifically covered by the notification. The presence of glucose or sorbitol in the finished product did not change its character as Intravenous Amino Acids, so the exemption remained available. A Board circular could not override the notification or defeat the benefit for the imported bulk drugs, and the denial of exemption was unsustainable.

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Issues: Whether bulk drugs imported for use in the manufacture of Intravenous Amino Acids were entitled to exemption under Notification No. 17/2001-Cus. despite the presence of glucose or sorbitol in the finished product.

Analysis: The exemption depended on the imported bulk drugs being used in the manufacture of a product listed in the notification. The imported goods were bulk drugs meant for manufacture of Intravenous Amino Acids, which were specifically covered by the notification. The fact that the finished product also contained glucose or sorbitol did not alter its character as Intravenous Amino Acids, and the Board circular relied on for denial could not defeat the notification benefit in relation to the imported bulk drugs.

Conclusion: The exemption was correctly availed and the denial was unsustainable.

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