RICARDSON HINDUSTAN LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioners M/s. Richardson Hindustan Limited are engaged in the manufacture of various bulk drugs, Ayurvedic and other pharmaceutical formulations. The petitioners manufacture amongst other pharmaceutical products Vicks Herbal throat drops which contain medicinal properties having therapeutic value. These throat drops have been certified by the Food and Drug Administration, Maharashtra State as Ayurvedic medicine. For the purpose of excise duty the throat drops are classified under Medicaments used in Ayurvedic systems. The throat drops, therefore, have medicinal properties and are not sweets or confectionery.

(2.) The petitioners wanted to import a High Speed Automatic Wrapping Machine for wrapping these throat drops. Under Import/Export Policy for April 1985 to March 1988 capital goods which may be imported by eligible actual users under open General Licence subject to conditions applicable thereto, are listed in Appendix 1 Part B. Item 18(18) of Part B of Appendix 1 permits import by an actual user under open general licence of High Speed Automatic Wrappers other than for safety Razor Blades, Cigarettes and Twist Wrappers for confectionery-of-maximum operating speeds above 120/ minute.

(3.) Under Appendix 6 categories of importers entitled to import under open general licence, the items allowed to be imported by them under Open General Licence and the conditions governing such importation are set out. As per item 3 of Appendix 6, capital goods which are covered by Appendix 1 Part B can be imported only by actual users (Industrial and Non-Industrial). Clause 1 of conditions governing open general licence set out in Appendix 6 also says that importers importing capital goods as are covered under Open General Licence, shall be subject to Actual User condition.