COLLECTOR OF CENTRAL EXCISE, GUNTUR versus ANDHRA SUGAR LTD.

COLLECTOR OF CENTRAL EXCISE, GUNTUR versus ANDHRA SUGAR LTD.

Acetic anhydride, when supplied as a drug intermediate to a drug manufacturer for the purpose of manufacturing drugs, is entitled to exemption under the relevant notifications. The Tribunal's order granting exemption was correct based on the end use of the product and the wide interpretation of 'drug intermediate'.

Parties
Appellant: Collector of Central Excise, Guntur; Respondent: Andhra Sugar Ltd.
Jurisdiction
India
Judgment Date
26 October 1988
Procedural Posture
Civil Appeal / Final Judgment (supreme Court)
Outcome
Appeals dismissed
Legal Topics
Statutory Interpretation, Drug Intermediate, Exemption Notification, Refund of Excise Duty
Central Excise Statutory Interpretation Drug Intermediate Exemption Notification Refund of Excise Duty

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Parties

Collector of Central Excise, Guntur

Appellant

Andhra Sugar Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Judgment (supreme Court)

Legal Issues

  1. 1 Whether acetic anhydride manufactured and supplied as a drug intermediate to drug manufacturer is exempt from excise duty under Notification No. 55/75 and 62/78
  2. 2 Interpretation of 'drug intermediate' for purposes of exemption

Ratio Decidendi

Acetic anhydride, when supplied as a drug intermediate to a drug manufacturer for the purpose of manufacturing drugs, is entitled to exemption under the relevant notifications. The Tribunal's order granting exemption was correct based on the end use of the product and the wide interpretation of 'drug intermediate'.

Court Disposition

Appeals dismissed

Orders

  • No order as to costs