1984 (9) TMI 174

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....pellants. Mr. A.S. Sundar Rajan, DR, 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 C....

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....ate over it use as a drug intermediate, it 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 ....

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....r uses not connected with that industry. We do not 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 exem....

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....that is a finished product, being used as an intermediate to produce more advanced dyes. 9.  Some people have sought to define a drug intermediate as the penultimate product before the finished goods. We are not able to see the merit or basis for this. 10.  We are of the view that xylidine and diethylamine when they are used in the manufacture of anesthetics, should be classed as d....