RALLIS (INDIA) LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition, the Petitioners, Rallis India Limited and another, challenge the orders passed by the Assistant Collector of Central Excise, DN. K-II, Bombay-I dated 10th September, 1982 and by the Collector of Central Excise (Appeals) Bombay, dated 26th February, 1983, being Exhibits 'O' and T' respectively to the petition by which it has been held that "Amezole Tablet" manufactured and patented by the Petitioners, is not eligible for concessional rate of duty Under Notification No. 116/69 dated 3rd May, 1969.

(2.) By the said Notification No. 116/69 issued in exercise of the powers conferred by Sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 , the Central Government exempted patent or proprietary medicines falling under Item No. 14E of the First Schedule to the Central Excise and Salt Act, 1944, and containing one or more of the ingredients specified in the Schedule thereto annexed, from the whole of the duty of excise leviable thereon. The material part of the said Notification which falls for consideration, reads thus :-

(3.) The Petitioners contend that Metronidazole I. P. is the only active ingredient in the 'Amezole Tablets' which has the therapeutic effect. Calcium Carbonate I. P. Magnesium Carbonate in the said tablet did not, in any way, affect the strength and the effect of Metronidazole I. P. Calcium Carbonate and Magnesium Carbonate were merely a pharmaceutical necessity for acting as diluents. They were therapeutically inert. The Petitioners, therefore, contend that 'Amezole Tablet' is eligible for concessional rate of duty under Notification No. 116/69. The Respondents contend that mere presence of Calcium Carbonate and Magnesium Carbonate in the composition irrespective of the quantity and regardless of whether it was active as an antacid or not, takes the tablet outside the scope of the said Notification.