Drug intermediate exemption for imported glyoxal upheld, subject to customs verification of actual end use.

Imported glyoxal was treated as eligible for exemption from additional countervailing duty as a drug intermediate under Notification No. 55/75-Central Excise. The Tribunal followed its earlier ruling on the same product and accepted that glyoxal fell within the exemption scheme. It also considered it reasonable for customs authorities to verify whether the substance was actually used as a drug intermediate, but that verification did not affect the substantive entitlement to relief. On that basis, the exemption claim succeeded.

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Issues: Whether imported glyoxal was entitled to exemption from additional countervailing duty as a drug intermediate under Notification No. 55/75-Central Excise.

Analysis: The Tribunal followed its earlier decision on the same product and held that glyoxal qualified for the benefit of the exemption notification. The request that customs authorities may verify whether the substance was in fact used as a drug intermediate was accepted as reasonable, while not displacing the substantive entitlement to relief.

Conclusion: The claim to exemption succeeded and the appeal was allowed.

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