SARABHAI M.CHEMICALS vs COMMNR. OF CENT.EXCISE,VADODARA

The Supreme Court, in this case, addressed appeals under Section 35L(b) of the Central Excise Act, 1944, concerning the exemption of excise duty for bulk drugs under notification no.234/86. The Court held that the exemption is valid as long as the goods are classified as bulk drugs, regardless of their end use, thereby affirming the appellant's entitlement to the exemption. The Court dismissed the show-cause notices issued by the Collector of Central Excise, Vadodara, which sought to recover excise duty on the grounds of misclassification based on end use.