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(b) prepared opium, that is, any product of opium obtained by any series of operations designed to transform opium into an extract suitable for smoking and the dross or other residue remaining after opium is smoked;
(c) phenanthrene alkaloids, namely, morphine, codeine, thebaine and their salts:
(d) diacetylmorphine, that is, the alkaloid also known as diamorphine or heroin and its salts; and
(e) all preparations containing more than 0.2 per cent of morphine or containing any diacetylmorphine;
22. On 14-11-1985 the Government of India had issued a notification No. 826 (E) dated 14.11.1985 and S.O. 40 (E) dated 29-01-1993 containing the list of narcotic drugs and Entry 35 thereof is as follows:-
"Methyl morphine (commonly known as ''Codeine') and Ethyl morphine and their salts (including Dionine), all dilutions and preparations except those which are compounded with one or more other ingredients and containing not more than 100 milligrams of the drug per dosage unit and with a concentration of not more than 2.5% in undivided preparations and which have been established in Therapeutic practice."

32. However, whether Phensedyl New Cough Linctus, or any substance containing "Methyl morphine (commonly known as ''Codeine') and Ethyl morphine and their salts (including Dionine), all dilutions and preparations except those which are compounded with one or more other ingredients and containing not more than 100 milligrams of the drug per dosage unit and with a concentration of not more than 2.5% in undivided preparations and which have been established in Therapeutic practice." falls within the exception to item No. 35 of the Notification dated 14-11-1985 issued by the Government of India containing the list of narcotic drugs and whether it is a ''Manufactured drug' and is a ''narcotic substance' was neither raised nor adjudicated in this case.

37. Sri Ashish Pandey, learned Special Public Prosecutor for the NCB has lastly submitted that for falling within the exception carved out in entry 35 of the Notification dated 14-11-1985, the drug in question must fulfil two conditions - (1) Methyl morphine (commonly known as ''Codeine') and Ethyl morphine and their salts (including Dionine), all dilutions and preparations except those which are compounded with one or more other ingredients and containing not more than 100 milligrams of the drug per dosage unit and with a concentration of not more than 2.5% in undivided preparations and (2) it should have been established in Therapeutic practice." He submits that although there is no dispute that the drug in question fulfils the condition no. 1, it does not fulfil the condition no. 2, namely having been established in therapeutic practice. According to him, the drug in question is being illegally diverted for non-therapeutic uses, and, therefore, it does not fall within the exception to item No. 35 of the Notification dated 14-11-1985 issued by the Government of India and it would be subject to the provisions of the NDPS Act.