1985 (11) TMI 55

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....riginal First Appellant and his two brothers, Appellants Nos. 2 and 3. 2.  The said Appellants were partners carrying on the business of manufacturing medicinal preparations under the firm name and style of Bhavsar Chemical Works at Vyara in the District of Surat in the State of Gujarat. The contention of the Appellants was that the ointments and liniments manufactured by them were not liable to excise duty under item I of the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (Act No. 16 of 1955). The Schedule to the said Act was substituted by Act 19 of 1961 and was again substituted by a new Schedule by Act No. 5 of 1964. It is with Item 1 in the Schedule to the said Act as substituted by Act 19 of 1961 t....

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.... ordinary alcoholic beverage or not and not whether it is in semi-solid or liquid form. Obviously, a semi-solid preparation cannot be consumed as ordinary alcoholic beverage, though it maybe possible that if it is dissolved, it may be so consumed, as to which we, however, express no opinion. Even a medicinal preparation in liquid form, though it contains alcohol, may not be capable of being consumed as ordinary alcoholic beverage for a variety of reasons, for instance, because its alcohol contents are so negligible that it would not constitute an alcoholic beverage. The use of the word "beverages" in item 1 does not mean that medicinal preparations referred to in that Item have to be in the form of a beverage. The fact that the medicinal pr....