1984 (9) TMI 174

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....R, for the Respondent. [Order per : H.R. Syiem, Member (T)]. - M/s. Gujarat Pharmaceutical & Chemical Works imported xylidine and diethylamine through Bombay port. They claimed exemption under Notification No. 55/75-C.E. as they use this in the manufacture of anesthetics in their factory. The custom house rejected their claim to exemption. The Appellate Collector of Central Excise, Bombay in hi....

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.... would still be classifiable as a drug intermediate in respect of that quantity used as drug intermediate in drug manufacture. 3.  The learned Counsel also pointed out that their xylidine and diethylamine had been actually used in the manufacture of lidocaine and lignocaine hydrochloride, and the excise authorities had certified so. The appellants point to a notice by Baroda Central Excise C....

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....ot think predominant use, even if such use can be ascertained is a suitable or practical test. To look for preponderant use is to assume that there is such a substance, and that such preponderant use can be determined. We are satisfied that no such assumption can be made. We hold that, in a subject like this, actual use is the only basis for the exemption. 6.  Nor is exclusive use a useful t....