2003 (1) TMI 366 - AT - Central Excise

Summary

Issues: Classification of medicaments under sub-headings 3003.10 and 3003.20, reversal of Modvat credit, interpretation of markings on products

Classification of Medicaments:
The appellants manufactured medicaments and claimed them to be Patent and Proprietary medicines under sub-heading 3003.10, while the department classified them as generic medicaments under sub-heading 3003.20. The Assistant Commissioner modified the classification based on a Supreme Court judgment, and the Commissioner (Appeals) upheld this decision. The issue revolved around whether the marks on the medicaments indicated house marks or brand names. The judgment of the Supreme Court and previous High Court decisions were cited to support the classification. The Tribunal remanded the decision for further analysis of markings for certain products.

Reversal of Modvat Credit:
The Assistant Commissioner reversed the Modvat credit of duty paid on inputs for manufacturing medicaments cleared as Patent and Proprietary medicines in two separate orders. The Commissioner (Appeals) upheld these reversals based on the Supreme Court's judgment. The Tribunal noted discrepancies in the orders and emphasized the need for a proper classification before deciding on Modvat credit issues.

Interpretation of Markings on Products:
The judgment highlighted specific products and their markings, such as Indomethacine Capsules, Paracetamol, Compound Magnesium Trisilicate, Ampiciline Cloxociline, Amoxyciline Capsules, and Cloxaciline Capsules. The Tribunal noted that for some products, the markings did not establish a connection between the product and the manufacturer, leading to a classification under sub-heading 3003.20. However, for products like Indosam, P-500, and Ampi Cloxa, a detailed analysis of markings was deemed necessary to determine if they were house names or product names. The Tribunal criticized the lack of discussion on markings in previous orders and remanded the decision for further examination.

In conclusion, the Tribunal disposed of the appeals by classifying certain products under sub-heading 3003.20 and remanding the decision for a detailed analysis of markings on other products. The judgment emphasized the importance of proper classification before addressing Modvat credit issues and criticized the lack of discussion on markings in previous orders.