USV LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) A short point, which arises for consideration in the matter is whether Dexovon Capsules containing 70 mg. of dextropropoxyphene-HCl, for short DXC, per dosage unit, which is less than the prescribed limit of 135 mg. per dosage unit to classify the same as narcotic or narcotic drugs would be liable to the State Excise Duty under the provisions of medicinal and Toilet Preparations (Excise Duties) Act, 1955.

(2.) THE few facts, relevant for the decision in the matter, are that, the petitioners-company is the manufacture of medicaments pursuant to the licence granted under the relevant statute and the Rules framed thereunder. The petitioners-company manufactures Dexovon capsules which, according to the petitioners, do not contain the narcotic drug as prescribed under the said Act. The said capsules contain a substance known as Dextropropoxyphene- HC1 of 70 mg. per dosage unit i. e. per capsule, which is according to the petitioners, much less than the prescribed limit to qualify the same to be medicinal preparations in terms of the clause No. l (iii) of the Schedule to the said Act.

(3.) SOME time in December, 1998, respondent No. 4 sought from the petitioner the particulars about the manufacture of medicaments using dextropropoxyphene with details regarding quantity thereof, L2 licence and payment of State Excise Duty on such product. Under letter dated 23rd december, 1998, the petitioner informed the respondent No. 4 that the said medicament is being manufactured under the licence obtained from the Food and drug Administration and it contains 70 mg. of Dextropropoxyphene-HCl per dosage unit which is far below the prescribed limit of 135 mg. per dosage unit and, therefore, the said medicament is not covered under the said Act and, therefore, cannot be subjected to the State Excise Duty. The respondent No. 3, by its letter dated 13th January, 1999, however, required the petitioners to pay State excise Duty at the rate of 20% ad valorem, stating that any medicaments containing Dextropropoxyphene, irrespective of the quantum was covered by the said Act in view of the Government of India letter dated 2nd March, 1989. The claim of the respondent No. 3 was sought to be disputed by the petitioners under their letter dated 10th February, 1999 contending that they are already paying central Excise Duty on the said product.