SUHRID GEIGY LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is a company which is engaged in the business of manufacturing pharmaceuticals and medicinal preparations. It has been inter alia manufacturing oral drugs injections and tablets. The respondents served Upon the petitioner two notices calling upon them to pay excise duty on the manufacture of thirteen medicinal preparations. The demands were made under Rule 9 of the Medicinal and Toilet Preparations (Excise Duty) Rules 1956 13 medicinal preparations have been listed at page 3 of the petition. They are as follows:- <FRM>JUDGEMENT_16_GLR2_1980Html1.htm</FRM> Items 1 to 10 are injections and items 11 to 13 are oral drugs.

(2.) The petitioner challenges in this petition the validity of the impugned demands made by the Central excise authorities on more than one ground The principal contention which Mr. Nanavaty who appears on behalf of the petitioner has raised is that by virtue of a notification issued by the Central Government items 1 to 10 have been exempted from payment of excise duty under Item 14 E in the First Schedule to the Central Excises and Salt Act 1944 He has further argued that within the meaning of sec. 3 read with Item I (iii) in the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act 1955 these 13 medicinal preparations are not liable to be taxed. In support of his argument he has indeed invited our attention to Seventh Schedule to the Constitution in particular to Entry 51 in the State List and Entry 54 in the Union List. Reference to these two entries in the Seventh Schedule to the Constitution was purely elucidatory. Nothing turns upon them. Item 14 E in the First Schedule to the Central Excises and Salt Act 1944 provides as follows:-

(3.) The next question which arises for our consideration is whether all the 13 medicinal preparations are liable to pay excise duty under sec. 3 of the Medicinal and Toilet Preparations (Excise Duties) Act 1955 read with Item 1 in the Schedule to that Act. Sub-sec. (1) of sec. 3 of this Act provides as follows:-