H.R. Syiem, Member (T)

1. This is an appeal against order No. C-642/BII-144/83 dated 21st March, 1983 passed by the Collector of Central Excise (Appeals), Bombay which arose from order No. V(14E)4-6/1980/4609 dated 31-12-1981 of the Assistant Collector of Central Excise, Bombay. The dispute is with respect to a medical preparation of M/s. Mac Laboratories Pvt. Ltd. which the appellants call Kemicetine Vaginal Suppositories (KVS) which contain the antibiotic chloramphenicol (CAF). The preparation is manufactured in two different strengths, namely, 0.25 gms. and 0.50 gms. chloramphenicol content. The KVS preparations are classified as patent and proprietary medicines and are assessed under item 14E of the Central Excise Tariff. The dispute arose when the central excise issued five demand notices listed below :-

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2. Under Notification No. 116/69-C.E., dated 3-5-1969 exemption was given under Rule 8, Sub-rule (1) of the Central Excise Rules, 1944 of duty in excess of 2 1/2% ad valorem to patent and proprietary medicines falling under item 14E containing 'chloramphenicol and its esters for oral and parenteral use'. This notification was amended by Notification No. 106/80-C.