1983 (11) TMI 305

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....is common order disposes of all the appeals. 3. The issue is whether the chemical - GLYOXAL 40% - imported by the appellants (hereinafter referred to as FAIRDEAL) was eligible for exemption from additional duty of customs with reference to Central Excise Notification No. 55/75, dated 1-3-1975 as a "drug intermediate" falling under Item No. 68 of the Central Excise Tariff Schedule (CET.) 4. The lower authorities held that the chemical was a raw material for the manufacture of a drug intermediate, namely, 2-Methyl Imidazole. It was a versatile chemical having multifarious uses. Since it was not exclusively or even predominantly used in the manufacture of drugs, it was not entitled to exemption as a "drug intermediate" in terms of the notifi....

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.... of the relevant classification list submitted as evidence (Pages 45 to 49 of the Paper Book in Appeal No. 689/1980-C). 6. Appearing on behalf of the respondent, Shri A.K. Jain submitted that- (i) the word "intermediate" has not been defined in the relevant notification. It is, therefore, useful to turn to a standard book like Hawley's Condensed Dictionary which has this to say :- "An organic compound, either cyclic (derived from coal tar or petroleum product such as benzene, toluene, naphthalene, etc.) or acyclic (e.g., ethyl and methyl alcohol). These compounds may be considered as chemical stepping stones between the parent substance and the final product. The cyclic type (e.g., aniline, beta-naphthol, and benzoyl-benzoic acid) still ....

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....ess Publications, Delhi, in their Chemical Engineering Series No. 43 entitled "Fine Chemicals, Drugs, Pharmaceuticals". In this book Imidazole but not Glyoxal 40% stood identified as a drug intermediate. 7. In reply, Shri Rajadhyaksha contended that there was no warrant to say that a "drug intermediate" to be so called should directly result in production of a drug when processed. 8. We have carefully considered the submissions of both sides. We must take note of the fact that the Appellate Collector has recorded, in his order dated 15-12-1980 (though in relation to some other appeal but of the same appellants), after study of voluminous data placed before him, that the principal use of Glyoxal 40% is as raw material in the manufacture of....

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.... ........ The distinction between an intermediate and an end-product is not always precise. 12. The rather vague, imprecise meaning of "intermediate" is brought out by reference to that three other authorities have to say on it :- (i) Organic product to be subjected to further chemical treatment to produce finished product such as dyes and pharmaceuticals. [Page 580 of Concise Chemical and Technical Dictionary (III edition) by H. Bennett]. (ii) "Intermediate" (Chem.) - A precursor to a desired product, ethylene is an intermediate for polyethylene, and ethane is an intermediate for ethylene." [Page 829-830 McGraw Hill Dictionary of Scientific and Technical Terms II Edition]. (iii) "Intermediate" (Chem.) - A general term for any ....