MAC LABORATORIES (P) LTD. versus COLLECTOR OF CENTRAL EXCISE, BOMBAY

MAC LABORATORIES (P) LTD. versus COLLECTOR OF CENTRAL EXCISE, BOMBAY

The Supreme Court held that 'parenteral use' in the exemption notification covers a wider scope than just injections and encompasses medicines such as vaginal suppositories which administer drugs by routes other than the alimentary canal, resulting in absorption into the body. Therefore, the appellant's product is entitled to total exemption under the relevant notifications.

Parties
Appellant: MAC LABORATORIES (P) LTD.; Respondent: Collector of Central Excise, Bombay
Jurisdiction
India
Judgment Date
22 November 1994
Procedural Posture
Civil Appeal / Supreme Court Final Appeal
Outcome
Appeal allowed
Legal Topics
Exemption Notification Interpretation, Central Excise, Definition of 'parenteral Use'
Taxation Excise Law Exemption Notification Interpretation Central Excise Definition of 'parenteral Use'

Case Brief

Summary, issues, holding and outcome

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Parties

MAC LABORATORIES (P) LTD.

Appellant

Collector of Central Excise, Bombay

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Appeal

Legal Issues

  1. 1 Whether Kemicetine Vaginal Suppositories containing chloramphenicol are covered as 'chloramphenicol and its esters for oral and parenteral use' within the meaning of Notification No. 116/69-CE dated 3.5.1969 as amended by Notification No. 106/80-CE dated 19.6.1980 issued under Rule 8(1) of the Central Excise Rules, 1944, and thus entitled to total exemption from excise duty.

Ratio Decidendi

The Supreme Court held that 'parenteral use' in the exemption notification covers a wider scope than just injections and encompasses medicines such as vaginal suppositories which administer drugs by routes other than the alimentary canal, resulting in absorption into the body. Therefore, the appellant's product is entitled to total exemption under the relevant notifications.

Court Disposition

Appeal allowed

Orders

  • Suppositories produced by the appellant are covered under Notification No. 106/80-CE dated 19th June 1980 and entitled to total exemption.
  • No order as to costs.