TaxTMI 
TaxTMI 
1991 (3) TMI 262
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.... under Bill of Entry No. A-4959 dated 15th May, 1986 and No. A-2304 dated 25th February, 1986 respectively on both of which 100% duty was paid by them on 28th July, 1986 should be treated as exempt from duty if not on legal grounds but on moral grounds as they had made available this life saving drug to patients suffering from cancer earlier without adding import duty in their cost. The fact is that these two drugs were exempt from duty by Notification No. 45/79 dated 1.3.1979. The claim is that they were withdrawn from the list appended to the notification in March, 1986. The appellants claim is that the withdrawal was probably by mistake since they were added to the duty free list on 18-7-1986 vide Notification No. 382/86. Their contentio....
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....appellants. 4. Shri L. Narasimha Murthy, the learned Jr. Departmental Representative, stated that Notification No. 382/86-Cus. was issued on 18.7.1986 and the exemption under it became applicable only from the date of its issue. He also invited attention to the proviso to Notification No. 45/79 dated 1.3.1979 which was as under at the material time - "Provided that the goods so imported are used in the manufacture of life saving drugs and medicines specified in the Notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 208/81-Cus., dated 22.9.1981 as amended from time to time: Provided further that the importer, by execution of a bond in such form and for such sum as may be prescribed by the ....
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....iso, the following proviso shall be substituted, namely - Provided further that the importer furnishes an undertaking to the effect that- (a) the said imported goods shall be used for the purpose specified in the first proviso; (b) an account of the said imported goods received and consumed in the place of manufacture for the aforesaid purpose shall be maintained in the manner specified by the Assistant Collector of Customs; (c) the extract of such account duly certified by the manufacturer evidencing the receipt of the said imported goods in the premises of the place of manufacture shall be produced within a period of 2 months or such extended period as the Assistant Collector of Customs may allow; and (d) he shall pay, on d....
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....counts as stipulated in the amending notifications. This being the position, the appellants are not entitled to the exemption which they are claiming in the appeal before us. The moral ground on which exemption is claimed in the appeal may indeed be laudable, but the law does not permit grant of exemption on such grounds. We, therefore, reject the appeal. 8. [Assent per: S.L. Peeran, Member (J)] - Appeal No. C-1056/89-C pertains to import of 5-Fluorouracil U.S.P. and Appeal No. C-2776/89-C pertains to import of Cyclophosphamide B.P. oral for tablets. 9. Both these items are bulk drugs and raw material for manufacture of life saving anti-cancer drugs. The life saving anti-cancer drugs have been included in Chapter 99 of the Customs Tar....
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....included in Chapter 99 are life saving drugs and medicines and not bulk drugs. It cannot be read more to say that it clarifies for grant of exemption retrospectively to the items in question from the date of introduction of Chapter 99. Hence, the exemption for Cyclophosphamide, a bulk drug, used in the manufacture of life saving drugs and medicines was withdrawn by Notification No. 103/86, dated 17-2-1986 and it did not in any way automatically grant exemption from payment of basic customs duty by its supposed inclusion under Chapter 99 as contended by the Consultant. As bulk drug does not fall under Chapter 99, it is only by introduction of Notification No. 382/86, dated 23-7-1986 the exemption has been reintroduced. The item Cyclophospham....