1993 (6) TMI 221 - AT - Central Excise

Summary

Issues:
Classification of the product PARAMINOL under Central Excise Tariff Act, 1985 - Whether under sub-heading 3003.19 as claimed by the appellants or under sub-heading 3304.00 as done by the Department.

Detailed Analysis:

1. Background and Facts:
The appeal challenges the order passed by the Collector of Central Excise (Appeals), Bombay, regarding the classification of the product PARAMINOL under the Central Excise Tariff Act, 1985. The appellants initially classified the product under Item 14E Patent or Proprietary Medicines but later sought classification under Heading 30.03, sub-heading 3003.19 as Other P or P medicaments. The Department, however, classified it under sub-heading 3304.00 as a sun screen or suntan cream based on the product literature.

2. Appellant's Arguments:
The appellant's counsel argued that PARAMINOL had been previously classified as a P or P medicine under the old Central Excise Tariff and continued under the same classification. They emphasized that the product was for medical use only, prescribed by doctors, and not marketed as a cosmetic or toilet preparation. Reference was made to relevant case law supporting the classification under Item 14E and sub-heading 3003.19.

3. Department's Arguments:
The Department's representative contended that the criteria under the old tariff were not applicable, and classification under the Central Excise Tariff Act, 1985 should consider Chapter Notes and Section Notes. They highlighted that the product literature clearly described PARAMINOL as a sun screen cream, falling under Heading 33.04. Reference was made to Chapter Note 1(d) of Chapter 30, indicating that Chapter 30 does not cover preparations of Chapter 33, even if they have therapeutic properties.

4. Decision and Analysis:
The Tribunal considered the arguments presented by both sides and referred to a previous case involving a similar product, Melatite cream, in Collector of Central Excise v. Nicholas Laboratories. In that case, the Tribunal upheld the classification under sub-heading 3003.19 based on the medicinal nature of the product. Similarly, in the present appeal, the Tribunal found that PARAMINOL was akin to Melatite cream and accepted the claim that it was a medicinal preparation. Relying on the precedent set in the Nicholas Laboratories case, the Tribunal classified PARAMINOL under sub-heading 3003.19 of the Central Excise Tariff Act, 1985, overturning the Department's classification under sub-heading 3304.00. Consequently, the appeal was allowed in favor of the appellant.