Conditional exemption for patent medicaments requires Annexure ingredients before any proviso on pharmaceutical necessities can apply.

Patent or proprietary medicaments could claim exemption under Notification No. 122/86 only if they contained one or more ingredients listed in the Annexure. The proviso treating certain non-specified ingredients as pharmaceutical necessities operated only after that main condition was satisfied. Because Rison Capsules contained none of the specified ingredients, the proviso could not be used to extend the exemption. The exemption claim therefore failed, and the order granting benefit under the notification was set aside.

---

---

Issues: Whether Rison Capsules were entitled to the benefit of Notification No. 122/86 dated 1-3-1986 when they did not contain any ingredient specified in the Annexure to the notification.

Analysis: The notification granted exemption to patent or proprietary medicaments falling under sub-heading 3003.19 only if they contained one or more ingredients specified in the Annexure. The proviso regarding pharmaceutical necessities operated only where the main condition was first satisfied. Since the capsule contained none of the specified ingredients, the proviso could not be invoked to confer exemption.

Conclusion: The capsules were not covered by the notification and the claim to exemption failed.

Final Conclusion: The department's appeal succeeded on the exemption issue, and the order granting benefit of Notification No. 122/86 in respect of Rison Capsules was set aside.

Ratio Decidendi: A proviso treating non-specified ingredients as pharmaceutical necessities cannot extend a conditional exemption unless the medicament first satisfies the main requirement of containing at least one ingredient specified in the exemption notification.

---