CCE Vs. NOVARTIS INDIA LTD. & ANR.

JUDGEMENT

(1.) THE above appeals involve the common issue of excisability of the product Monomethyl Chloro Acetoacetamide (MMACL) arising in the course of manufacture of different pesticides by the respondents herein and are hence heard together and disposed of by this common order. The brief facts of each case are set out hereunder:

(2.) WE have considered the rival submissions. Let us begin our findings by adverting to the opinion of the Chief Chemist, Central Revenue Control Laboratory, New Delhi which has been forwarded to the Adjudicating Authority under the cover of Ministry of Finance letter dated 4.7.1991.

(4.) THE test report clearly brings out that MMACL manufactured by the respondents herein is not stable and marketable and requires further process before it attains stability and marketability. The Department has not brought on record any material to establish that MMACL in toluene solution (which is the product in dispute in M/s. Nocil case) or MMACL in centrifuged wet cake form (the product in dispute in M/s. Novartis case) is marketable. The product in dispute cannot be equated either to or compared with either MMACL in flake form which was imported by M/s. Nocil or MMACL in DCE solution (Dicholoro -Ethane solution) cleared by M/s. Colour Chem Ltd. to M/s. Nocil and the Department has not shown that MMACL produced in the factory of either of the respondents is comparable to MMACL in flake form (which is of higher purity) or MMACL in DC solution. Hence the evidence in the form of gate passes showing clearance of MMACL in DCE solution and evidence of import by M/s. Nocil in flake form of MMACL does not advance the case of the Revenue.