LAWS(GJH)-1989-9-11

SARABHAI M CHEMICALS Vs. UNION OF INDIA

Decided On September 20, 1989
Sarabhai M Chemicals Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The petitioner company is manufacturing `sorbitol which is liable to excise duty. The contention of the Excise department is that it is covered by the schedule wherein the goods liable to excise duty are mentioned. The contention of the petitioner company is that it is entitled to exemption of excise duly as per notification No.234/82 dated 1/11/1982 and notification No.234/86 dated 3/04/1986 The contention of the petitioner company is based on the ground that the aforesaid commodity is `bulk drug and irrespective of end-use of the same it is entitled to exemption from payment of excise duly. As against this it appears that the stand of the department is that unless the product is used for a particular pur- pose i.e. for medicinal use the manufacturer cannot claim exemption.

(2.) The Assistant Collector of Central Excise Vadodara and the Addl. Collector of Central Excise have issued different show cause notices calling upon the petitioner company to show cause as to why the company should not be directed to pay excise duly on the basis that it was not entitled to exemption as claimed for. In response to some of the show cause notices the petitioner company has filed reply while in response to some of the notices reply is not filed. Pending the proceedings before the Assistant Collector and the Additional Collector Central Excise and Customs Vadodara this petition is filed inter alia praying that trade notice No.120/20/83 dated 2 and trade notice No. 264/88 dated 28 be quashed and set aside. The petitioner company apprehends that in view of the trade notices issued by the Central Board of Excise and Customs the officers before whom the proceed- ings are pending would not decide the matter judiciously and that the remedy before the de- partment has become illusory.

(3.) The Central Board of Excise and Customs issued trade Notice No.120/20/83/CX dated 2/12/1988 Therein reference is made to notification No.234/82 and notification No.234/86. The expression `bulk drugs falling under erstwhile tariff item No. 68 has been con- sidered and certain clarifications have been made in this behalf. In paras 4 and 5 of the Trade Notice it is stated as follows :