2023-VIL-1081-CESTAT-CHE-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Appellant cleared goods viz. ‘Danazol’ without payment of duty by claiming exemption under Sl. No. 47A of the Notification No. 4/2006-CE dated 1.3.2006 - Dept of the view that since the appellant had cleared the product ‘Danazol’ to other manufacturers without following procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, the appellant was not eligible for exemption under Notification No. 4/2006-CE - Whether the product ‘Danazol’ which is a ‘bulk drug’ would fall under Sl. No. 47A of Notification No. 4/2006-CE dated 1.3.2006 or it has to be considered as ‘drug or medicine’ which falls under Sl. No. 47B of the said Notification – HELD - the issue as to whether ‘Danazol’ is eligible for the exemption under Sl. No. 47A of Notification No.4/2006-CE is no longer res integra – since the term ‘bulk drugs’ and ‘drug and medicines’ have not been defined in the Notification, the definition as per Drugs (Price Control) Order, 1995 is relevant. As per Drugs (Price Control) Order, 1995, the term ‘drug’ have been defined to include ‘bulk drug’ and formulations. Thus, the said judgments put in mathematical terms could be understood as meaning that while ‘drug’ is a superset, ‘bulk drugs’ is the subset, whereby ‘bulk drugs’ are covered by the term ‘drugs’. Hence, it is for the appellant to choose whichever Sl no of the exemption is more favourable to him - the appellant is entitled to the benefit of unconditional exemption from tax as per Sl. No. 47A of Notification No. 4/2006-CE dated 1.3.2006 – the impugned order is set aside and appellant is allowed the benefit of Sl. No. 47A of Notification No. 4/2006-CE dated 1.3.2006 for the product 'Danazol’. Credit reversed by the appellant under Rule 6(3) of CENVAT Credit Rules, 2004 is subject to verification by the department – the appeal is disposed of
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GSTAT Appeal filed wrongly...
By CA Vivek Jalan

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