2000 (3) TMI 280

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....of in this common order. 2. These four applications were earlier disposed of vide order No. CII/2416/WZB/1998, dated 29-10-1998. In terms of the direction of the orders of the High Court of Gujarat, dated 9-12-1998 in Special Civil Application Nos. 10117, 10412, 10461 & 10492 of 1998, these applications were heard by us today for disposal. The applicants are manufacturers of bulk drugs. The process involves growth of certain micro-organisms. For this growth, the applicants prepare a food media or broth. The raw materials were several including tapioca, cottonseed flour, certain chemicals, corn oil etc. The allegation was made in several show cause notices that this media was excisable and dutiable goods classifiable under sub-heading ....

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....unal in the case of CCE v. Citurgia Bio-Chemicals Ltd. [1996 (87) E.L.T. 267 (Tri)]. This judgment deals with broth made out of molasses used as a growth media for the micro-organism which ultimately resulted in the production of citric acid. In this judgment, the Tribunal observed that the media was unstable product, that it was liable to decomposition that it had short shelf life. Relying upon the Supreme Court decision in the case of Bhor Industries Ltd. the Tribunal found that the media so prepared was not a dutiable product capable of being marketed. This judgment was also relied upon in these proceedings. 6.  We observe that the law is well settled and that is, for duty to be attracted it is not enough that it exists in the Tari....