JUDGMENT

R.M. SAHAI, J.- This appeal under Section 35-L of the Central Excises and Salt Act, 1944 (Act for short) raises two important questions of law, one relating to construction of Item 14-E of the Central Excise Tariff levying duty on patent and proprietary medicines and other the scope of proviso to Section 11-A of the Act.

2. For purposes of duty, patent and proprietary medicines were classified in relevant period in two broad categories - one, which were dutiable under Tariff Item 14-E and other which fell under the Residuary Item 68. The latter were wholly exempt from duty under Notification No. 55/75 dated 1-3-1975. The appellant manufactured pharmacopoeial and non-pharmacopoeial medicines. One of the items manufactured by the appellant was 20% Dextrose injection. It is a trade name in the Indian pharmacopoeia. It being one of the medicines specified in pharmacopoeia it was wholly exempt from duty. An item which fell under Tariff Item 68 and was wholly exempt from duty was further exempted from operation of Rule 174 and no Central Excise licence to manufacture it was required to be taken out. The appellant, therefore, did not obtain any licence and cleared the Dextrose man