TaxTMI 
TaxTMI 
1995 (5) TMI 103
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....ts in question manufactured by them viz. Flavomycin-40 and Stenorol fall for classification under Chapter sub-heading 3003.10 as P or P medicaments of the Schedule to the CETA 1985 and chargeable to duty accordingly, and further imposing a penalty of Rs. 4 lakhs on M/s. Dominion Chemical Industries and a penalty of Rs. 2 lakhs on M/s. Hoechst India Ltd. 2. Shri P.D. Ghandy, learned Counsel appearing on behalf of M/s. Dominion Chemical Industries, submits that the products are animal feed supplements falling under Chapter sub-heading 2302.00 and are subject to nil rate of duty and are known as such in the market. They are to be fed to chicks from the day they are hatched, upto the marketing stage to improve feed efficiency. Flavomycin ....
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.... are animal feed supplements falling under Chapter 23 and hence excluded from the coverage of Chapter 30. Learned Counsel seeks to distinguish the judgment of the Hon'ble Supreme Court in the case of Eskayef reported in 1990 (49) E.L.T. 649 (SC), which has been relied upon by the adjudicating authority by stating that the products therein viz Neftin-50 and Neftin 200 were drugs appearing in pharmacopoeia and it was in that context that the Hon'ble Supreme Court observed that a substance does not cease to be a drug merely because it can also be used for purposes other than for prevention or treatment of diseases. 3. The next submission of the learned Counsel is that the demand for the period September 1988 to July 1993 is barred by lim....
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....dditive for broilers and cockerels; that it is effective against strains of coccidia; that it is brood spectrum and coccidiccidal in action prevents coccidiosis; that it considerably reduces cyst formation and excretion and prevents recontamination, reinfection and resistance formation; that it is safe at the recommended dosage and free from untoward side effects and free from phyto-toxicity. Stenorol is described as Halofuginone premix. The product flavomycin-40 eliminates extra chromosomal resistance of E-Coli and Salmonella; that it lowers the mortality rate as a result of improved resistance to infection; that it is a highly effective and extremely safe anti-biotic growth promotion. It is described as flavophospholipol premix. He submit....
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....ction he draws our attention to the findings contained in para 65 of the impugned order. He, therefore, prays that the applicants be directed to deposit the entire duty and penalty. 6. We have carefully considered the rival submissions. We find that Flavomycin-40 is a chemical which is fed as a sole ration in the feed and it facilitates absorption of nutrients from feed while Stenorol is a synthetic chemical, a derivative of an alkaloid which is not absorbed in the tissue/body of the broilers and that it aids in the prevention of coccidiosis (statement of Dr. V.K. Sharma, Product Promotion Manager, Animal Health Promotion, M/s. Hoechst India Ltd.). In the case of Ranbaxy Laboratories (supra), the Tribunal has held that in order to attract ....
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.... used for improving egg production and increase in growth rate of broilers they have to be regarded as P or P medicines chargeable to excise duty under Item 14E. In view of these judgments it cannot be said that the applicants have made out a prima facie case for classification of the products under Chapter 23 and it appears that prima facie, case on classification is in favour of the Department. The classification issue is contentious and can be gone into in detail only upon a consideration of the entire evidence at the stage of final hearing of the appeals. 7. However, we see great force in the submission of the learned Counsel that the extended period of limitation is not applicable in this case and, therefore, the demand can be ra....