ORDER :

Suhas C. Sen, J.

1. The dispute in this case is about the interpretation of the Notification issued by the Central Government on April 1, 1977 being G.S.R. 163 (E). In that notification the Government exempted clinical samples cleared by a manufacturer of patent or proprietary medicines falling under Item No. 14E of the First Schedule to the Central Excises and Salt Act, 1944, (1 of 1944) from the whole of the duty excisable thereon. This exemption was subject to following provisions:

(i) such clearances in any month are limited to a quantity not exceeding four per cent by value of the total duty paid clearances during the preceding month of all types of patent or proprietary medicines,

(ii) samples are intended for the free supply to hospitals, nursing homes or medical practitioners, and

(iii) the samples are packed in a form distinctly different from regular trade packing and each smallest packing is clearly and conspicuously marked "Physician's samples, not to be sold.

Provided further that in respect of a patent or proprietary medicine aforesaid, the exemption under this notification will be available only for a period of three years from the date of first clearance of