Collector of Central Excise vs Citurgia Biochemicals Ltd.

This appeal is against an order dated 6th December, 1985 passed by the Customs, Excise and Gold (Control) Appellate Tribunal (for short "the Tribunal")- The question before the Tribunal was whether citric acid manufactured by the respondent was entitled to exemption under Notification No. 55/1975-C.E., dated 1st March, 1975, as amended by Notification No. 62/1978, dated 1st March, 1978. The Tribunal held that to the extent the citric acid was used as an intermediate for manufacture of a drug, the respondent would be entitled to the benefit of the Notification. The Tribunal, therefore, remanded the matter back to the Assistant Collector to make inquiry and satisfy himself and grant benefit of the Notification to the extent the citric acid cleared by the respondent herein was used in drugs, medicines and pharmaceuticals. The appellant has filed this appeal on the ground that the predominant use of citric acid is for use in beverages, confectionery, effervescent powders and tablets and that, therefore, citric acid is not a substance to which benefit of the Notification can at all be given. We see no substance in this contention. The Notification exempts intermediates of drugs, medicines and pharmaceuticals. To the extent the citric acid is being used as an intermediate for a drug, medicine or pharmaceutical it would be entitled to exemption under the Notification. We, therefore, see no infirmity in the impugned judgment.

It must be mentioned that we have in a judgment delivered today in C.A. No. 9346 of 1994 held that citric acid was entitled to the exemption of the aforementioned Notification. However that was on facts of that case and the admission made therein. In any event the respondent herein has not filed any appeal against the impugned judgment.

This appeal is, accordingly, dismissed. There will be no order as to costs.