Clarificatory amendment to exemption notification extends relief to salt form, allowing Gentamycin Sulphate the exemption benefit.

Gentamycin Sulphate was held entitled to exemption under Notification No. 122/86-C.E. because the later amendment by Notification No. 455/86-C.E. was treated as clarificatory and retrospective. The Tribunal applied the principle that where an exemption notification is amended to include salt forms of a specified ingredient, the benefit extends to the salt form as well. Following its earlier view on comparable pharmacopoeial formulations, it set aside the denial of exemption and allowed the appeal in favour of the assessee.

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Issues: Whether Gentamycin Sulphate was entitled to exemption under Notification No. 122/86-C.E. despite the original notification mentioning Gentamycin and not the salt form.

Analysis: The exemption notification was subsequently amended by Notification No. 455/86-C.E., and the amendment was treated as clarificatory and retrospective. The Tribunal relied on its earlier view that where the amendment was intended to incorporate salt forms of the ingredients specified in the pharmacopoeia, the benefit of the notification could extend to the salt form mentioned in the amended notification. The interpretation adopted was consistent with earlier decisions extending exemption to comparable salt-form formulations.

Conclusion: Gentamycin Sulphate was held entitled to the benefit of exemption under Notification No. 122/86-C.E.

Final Conclusion: The impugned denial of exemption was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where a subsequent amendment to an exemption notification is clarificatory and intended to include salt forms of the specified ingredient, the exemption applies to the salt form as well.

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