TaxTMI 
TaxTMI 
2018 (2) TMI 210
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....100 ml., and Mannitol Injection - 100/350 ml. They claimed exemption in terms of Sl. No.56 of Notification No.6/2002-CE, dated 01.03.2002. The exemption is available to "I.V. Fluids, which are used for Sugar, Electrolyte or Fluid replenishment." Full exemption has been granted to these products. The Revenue entertained a view that when the drugs manufactured by the respondents are administered intravenously, the same will not qualify for exemption in the above entry as the said exemption is available only to I.V. Fluids used for Sugar, Electrolyte or Fluid replenishment. The items manufactured by the respondents on which exemptions are claimed are Schedule 'H' drugs and are for curing diseases and cannot be considered as fluid reple....
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....not be covered by the entry for exemption. Accordingly, the learned Authorised Representative submitted that the findings of the lower authorities are not sustainable in view of the legal principles, which are examined and concluded in these decided cases. 4. Learned counsel for the respondents contested the appeals by the Revenue. He submitted that certain drugs manufactured by the respondents are administered along with Electrolytic I.V. Fluids. This will not exclude them from the entry for exemption as it is the mode of administration which is relevant and not the composition of I.V. Fluids. He relied on the expert opinion given in-house. It is his submission that the I.V. Fluids in the present situations are for replenishment value, as....
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....Court in M/s. Venus Remedies Ltd (supra), the therapeutic value of I.V. Fluid gets dominant significance. In other words, it is nobody's case that I.V. Fluids that are purely used for replenishment purposes are similar to I.V. Fluids used for therapeutic as well as replenishment purposes. Apparently, both are for different medical purposes and application. They are not interchangeable. We have perused the decision of the Hon'ble Punjab and Harayana High Court in the case of M/s. Venus Remedies Ltd., (supra). Hon'ble High Court examined the very same dispute, which included the item Mannitol I.P. The relevant findings are as below: "9. Both the above said points were decided by the Tribunal against the appellant on the basis of ....
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....the purpose of medicines. The dominant purpose loses its significance once the intravenous fluids can be put to use for other purpose also. The addition of medicines restrict the use thereof for a particular purpose and it cannot be used for the common purpose of sugar, electrolyte or fluid replenishment. The intention of the legislature can easily be inferred from the amendment made in the subsequent notification and restricting intravenous fluid, for being exempted from excise duty, which are used for sugar, electrolyte or fluid replenishment. The potential of the intravenous fluids changes, once it is medicated. It is only for three categories so mentioned that it is exempted from excise duty and not otherwise. Therefore, we are not incl....