TaxTMI 
TaxTMI 
2002 (9) TMI 110
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....6, dated April 3, 1986, granting exemption to bulk drugs falling under sub-heading 2913.00 of Chapter 29 of Schedule to the Central Excise Tariff Act, 1985 from the date of filing of classification lists. 3. It would be relevant to refer to the facts giving rise to this appeal. 4. The appellant is a manufacturer of bulk drugs. The drugs manufactured by it were classified under Tariff Item 68 of the erstwhile Central Excise Tariff and they were exempt under Notification No. 234/82, dated 1-11-1982. With effect from 1-3-1986, the new classification was given effect to under the Central Excise Tariff Act, 1985 (for short 'the Act'). On March 3, 1986, under the Act the appellant filed classification lists categorizing the bulk drugs under....
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....ption at the time of filing the classification list so as to enable the Assistant Collector to fix a period for production of the certificate from the Drugs Controller of the Government of India to the effect that the drugs claimed for exemption were bulk drugs within the meaning of the explanation to the notification. It is that order of the CEGAT that is assailed in this appeal. 5. We heard the learned Counsel for the parties. 6. There is no dispute that the bulk drugs manufactured by the appellant fall under Chapter 29 and are classifiable under sub-heading 2913.00. It is also not in dispute that the rate of excise duty payable against such goods is 15%. It is admitted that on 3-4-1986, Notification No. 234/86 was issued by the Cen....
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....first limb exempts the bulk drugs falling under Chapter 28 or Chapter 29 of the Schedule to the Central Excise Tariff Act, 1985. The second limb contains a proviso which embodies the conditions for availing the exemption. There are four requirements : (i) the manufacturer has to furnish to the "proper officer" a certificate from the Drug Controller of the Government of India; (ii) the certificate has to be furnished within such time as may be allowed by the said officer; (iii) the certificate must contain the recital that the drugs or chemicals which are claimed for exemption under the notification are the bulk drugs within the meaning of the explanation to the notification; and (iv) the bulk drugs are normally used for diagnosis, treatment....
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....t apart, the classification lists were filed by the appellant on 3-3-1986 and 3-4-1986 whereas, admittedly, the said exemption notification came to be issued only on 3-4-1986. The requirement which was insisted upon by the authorities and confirmed by the Tribunal, was an impossibility. 10. It has been noted above that the bulk drugs manufactured by the appellant fell under Tariff Item 68 of the erstwhile Central Excise Tariff and the appellant was enjoying exemption under Notification No. 234/82. Tariff Item 68 of the old Act is, in terms, identical to sub-heading 2913.00 of the Schedule to the Act. As on the date of filing of the classification list, the earlier Notification No. 234/82 was not operative. It was in all fairness that the....
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....of Special Importance) Amendment Act, 1985; or (b) maintaining the effective rates of duties of excise in respect of certain goods at the level obtaining prior to the 1st day of March, 1986 notwithstanding the changes in the rates of duties of excise made by the Finance Bill, 1986; shall, in so far as such notification relates to such goods, be deemed to have, and to have always had, effect on and from the 1st day of March, 1986." 12. This provision is self evident. The said Act was passed on 9th September, 1986. In view of the provisions of Section 2 of the said Act, quoted above, Notification No. 234, dated 3-4-1986 would relate back to March 1, 1986. Consequently, the appellant became en....