2009 (7) TMI 1139

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... September, 2007. He had confirmed demand of Central Excise duty and education cess totaling Rs. 44,08,400/- along with applicable interest. He had also imposed a penalty of Rs. 5 lakhs on the appellants under Rule 25 of the Central Excise Rules, 2002. 2. The facts of the case are that appellants had cleared consignments of "Lopinavir" availing exemption under Notification No. 4/2006-C.E. in terms of the following entry Sl. No. 47A in the table to the said notification. 47 28,29,30 or 38 The following goods, namely : (A) Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 3 or List 4 appended to the notification of the Government of India in the erstwhile Ministry of Finance (Department of Re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Cipla Ltd. v. CCE, Chennai [2007 (218) E.L.T. 547 (Tri. Chennai)]. 4. In the appeal before the Tribunal, the appellant revenue has taken the following grounds. It is submitted that "Lopinavir" is "bulk drug" and cannot be treated as "drug or medicines". The expression drug at Sl. No. 47(A) referred to finished pharmaceutical products or formulations whereas 'bulk drugs' at Sl. No. 47(B) referred to bulk drugs which were used in the manufacture of drugs or medicines. The assessee had classified the item under Chapter 29 of the Central Excise Tariff which covered organic chemicals; and drugs were classifiable under Chapter 30 of the tariff. It is submitted that the impugned goods were bulk drugs as per the definition of the term in the noti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... we find that the impugned clearances of "Lopinavir" are entitled to exemption extended to goods at against Sl. No. 47(A). In terms of the Notification such clearances are entitled to exemption unconditionally. 7. We also find that the revenue has no case that the disputed consignments had not been utilized in further production of medicines by the consignee. The assessee was forced to make clearances for further manufacture without the buyer producing the requisite certificate as the jurisdictional Asstt. Commissioner of the buyer firm had not granted the said certificate and had informed them that such certificate was not necessary. In the circumstances, the reliance of the assessee on the decision in the case of M/s. Sundaram Fasteners ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed to Notification No. 21/2002-Cus. The term 'drug' had to be considered to include bulk drug and formulation, as per the Drugs (Price Control) Rules, both items being bulk drugs were entitled to the benefit of the Notification. 10. In the M/s. Burroughs Wellcome (I) Ltd. case, the Tribunal interpreted the following entries at Sl. No. 43 of Notification No. 11/97 C.E. Sl. No. Chapter or Heading No. or sub-heading No. Description of goods Standard rate Additional duty rate Condition No. 43 28, 29, 30 or 38 The following goods (A) The life saving drugs or medicines (including diagnostic test kits) specified in List 2. Nil   Nil   --     (B) Bulk drugs used in the manufacture of life saving drugs or medi....