Drug intermediate exemption upheld for Acetyl Acetone used in sulphadimidine manufacture, following earlier precedent on the same goods.

Acetyl Acetone used in the manufacture of sulphadimidine was treated as a drug intermediate eligible for exemption from additional countervailing duty under the relevant excise notification. The Tribunal relied on its earlier view that the same product had already been recognised as a drug intermediate entitled to exemption under Notification No. 55/75-CE, and found no distinguishing ground to depart from that precedent. On that basis, the exemption was held admissible and the appeal was allowed.

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Issues: Whether Acetyl Acetone used in the manufacture of sulphadimidine qualified as a drug intermediate and was eligible for exemption from additional countervailing duty under the relevant excise notification.

Analysis: The Tribunal noted that the very same product had earlier been held to be a drug intermediate entitled to exemption under Notification No. 55/75-CE. No distinguishing ground was shown to depart from that earlier determination, and the issue was treated as covered by the prior decision on the same goods.

Conclusion: The exemption was held admissible and the appeal was allowed.

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