1996 (12) TMI 68

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.... the case of Suhrid Geigy Ltd., Ahmedabad v. Union of India & Ors. [1980 E.L.T. 538], which is under challenge in Civil Appeal No. 1780/80, and was followed in the other matters. We shall deal with the principal judgment first. 2. The appellants manufacture inter alia, the following medicinal preparations : Sr. No. Product   1. Xylocaine 1% plain vial 2. " 2% plain vial 3. " 1% Adrenaline vial 4. " 2% Adrenaline vial 5. " 2% Adrenaline cartridge 6. " 5% heavy ampoule 7. " 4% topical vial 8. " 5% ointment tube 9. " 2% jelly tube 10. " 2% viscous vial 11. Butazolidin 3 ml. ampoule 12. Irgapyrine 3 ml. ampoule 13. ....

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....at the rates specified in the Schedule. On all dutiable goods manufactured in India. Entry 1 of the Schedule deals with medicinal preparations and sub-entry (1) thereof with alopathic medicinal preparations. Item (iii) thereunder at the relevant time prescribed the duty leviable on "medicinal preparations not containing alcohol but containing narcotic drug or narcotic". 4. The aforementioned notices were issued to the appellants upon the basis that anaesthetics, including Xylocaine, were covered by the definition of a narcotic drug or narcotic in Section 2(h); hence, medicinal preparations containing Xylocaine were assessable to duty under the said Act. 5. The High Court took the view that the use in Section 2(h) of the word "or" betw....

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.... narcotic under Section 2(h). 7. By reason of item (iii) of sub-entry (1) of Entry 1 of the Schedule to the said Act, to be dutiable thereunder medicinal preparation should contain a narcotic drug or a narcotic. In other words, the medicinal preparation must contain a substance that, when swallowed or inhaled by or injected into a human being, produces in him either drowsiness or sleep or stupefaction or insensibility. 8. The Revenue's case is that the said medicinal preparations contain Xylocaine, which is an anaesthetic; Xylocaine has the property of producing drowsiness, sleep, stupefaction and insensibility; therefore, the said medicinal preparations are dutiable. The said medicinal preparations are Xylocaine of varying strengths;....