Per K.S. Venkataramani :

The Appellants are engaged in manufacture of Patent and Proprietary medicaments classifiable under Chapter 30 of the Central Tariff Act, 1985. They manufacture a product called Neo-Mercazole based on bulk drug Carbimazole. They claimed exemption under Notification 29/88 which provides for concessional rate of duty of P & P medicines which are single ingredient and based on bulk drugs specified in Schedule II to Drug Price Control Order 1988. Proceedings were initiated against the Appellants by issue of show cause notice on 30.3.1993. The case of the department is that bulk drug Carbimazole has been deleted from the Second Schedule of the DPCO vide Notification No. 90,524(E), dated 5.7.1989. Therefore the Appellant's product Neo-Mercazole is not eligible for the concessional rate of duty. The show cause notice sought to recover the duty for the period 12.2.1990 to November 1990. It was also alleged that they filed price list dated 12.2.1990 in part III for the product claiming discount 15% on retail price under Notification 245/83 being not entitled to the 15% discount benefit. Duty demand of Rs. 2,69,473/- was made by the show cause notice. The Commissi