Collector of Customs Vs. Shrishma Fine Chemicals and Pharmaceuticals (Karnataka) Ltd. - Court Judgment

Excerpt:
.....tarrif act, 1975 - respondent claim exemption in customs duty on import of phenol usp grade - exemption notification issued under section 25 provide exemption to pharmaceutical chemicals - phenol usp grade fell within pharmaceutical chemicals - held, respondent entitled for exemption. - rule 57-ad, sub-rules (1) & (2) & cenvat credit rules, 2002, rules 6(1), (2) & (3): [s.h. kapadia & aftab alam, jj] scope, applicability and interpretation of - inadmissibility of, in case of inputs used in manufacture of exempted goods whether general bar against arises - assessee using low sulphur heavy stock as fuel for producing steam and electricity used in manufacture of exempted goods during disputed period (s) - reversal of cenvat credit cestat holding credit admissible-whether inputs.....orders.p. bharucha and s.c. sen, jj.1. the respondents imported phenol usp grade and claimed the benefit of an exemption notification issued under the provisions of section 25 of the customs act, 1962. the exemption therein applied, inter alia, to 'pharmaceutical chemicals, i.e., chemicals having prophylatic or therapeutic value and used solely or predominantly as drugs, not elsewhere specified'. the tribunal, having regard to the material before it, came to the conclusion that phenol usp fell within the pharmaceutical chemicals described in the notification as aforesaid. we are in no doubt that the tribunal was right in doing so.2. the appeals are dismissed, with no order as to costs.

Judgment:
ORDER

S.P. Bharucha and S.C. Sen, JJ.

1. The respondents imported Phenol USP Grade and claimed the benefit of an exemption notification issued under the provisions of Section 25 of the Customs Act, 1962. The exemption therein applied, inter alia, to 'pharmaceutical chemicals, i.e., chemicals having prophylatic or therapeutic value and used solely or predominantly as drugs, not elsewhere specified'. The Tribunal, having regard to the material before it, came to the conclusion that Phenol USP fell within the pharmaceutical chemicals described in the notification as aforesaid. We are in no doubt that the Tribunal was right in doing so.

2. The appeals are dismissed, with no order as to costs.