KABRA DRUGS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In these appeals which have been filed against the common order -in -appeal, the issue relates to the classification of the product "Ethyl Chloride IP -100 ml and Anaesthetic Ether IP -500 ml" and the availability of the Modvat credit to the appellants on the inputs used in the manufacture of the product.

(2.) We have heard both sides. From the record, it is evident that the appellants filed a declaration in respect of both these products under Chapter 29 (sub -heading 2903.90 and 2909.00 respectively). They cleared the goods on payment of appropriate duty as per law.

(3.) The Revenue had propounded the classification under Chapter 30 wherein NIL rate of duty is provided. We find that the Asstt. Commissioner while adjudicating the Show Cause Notice sought the expert's opinion of Deputy Director, Food and Drugs Administration, Indore, who opined in clear terms that the product manufactured by the appellants are bulk drugs classifiable under Chapter 29. He, by relying upon that opinion accepted the classification as claimed by the appellants. The Commissioner (Appeals), in our view, without any sufficient and tangible evidence to falsify that opinion of the Deputy Director, Food and Drugs Administration, Indore, had reversed the order of the Asstt. Commissioner. It appears that he has been misled by the fact that the appellants were marketing the product in 500 ml and 100ml bottles, but from that fact alone it could not be said that these were medicaments. The drug authorities have also given the opinion in favour of the appellants. In the licence issued by that authority, these goods have been described as 'Bulk Drugs'. Therefore, we are unable to accept the view taken by the Commissioner (Appeals) for classifying the goods under Chapter Heading 30.