1996 (5) TMI 380 - AT - Central Excise

Summary

Issues: Classification of Vitamin B Complex Tablets under Tariff sub-headings 2936.00 and 3003.20

In this judgment by the Appellate Tribunal CEGAT, the issue at hand is the classification of Vitamin B Complex Tablets manufactured by the appellants under Tariff sub-headings 2936.00 and 3003.20 of the Central Excise Tariff. The appellants claimed a Nil rate of duty for their product, while the authorities contended that the tablets should be classified under sub-heading 2936.00 attracting duty at 15% ad valorem. The main question is whether the tablets should be classified as vitamins under sub-heading 2936.00 or as medicaments under sub-heading 3003.20.

The tribunal considered the arguments presented by both parties and examined the relevant provisions under Chapter 29 and Chapter 30 of the Central Excise Tariff to determine the appropriate classification for the Vitamin B Complex Tablets. The appellants argued that the tablets should not be classified under sub-heading 2936.00 as it covers only separate chemically defined vitamins, whereas their product is a formulation containing various ingredients in addition to vitamins. The tribunal analyzed the composition of the tablets, which included Thiamine, Riboflavin, Niacinamide, Calcium Pantothenate, and other ingredients, concluding that the tablets do not fall under sub-heading 2936.00 as they are a formulation of several vitamins with additional components.

Regarding the alternative classification under sub-heading 3003.20, the Collector (Appeals) had rejected this classification, stating that the product did not meet the definition of a medicament for therapeutic or prophylactic uses as per Chapter Note 2(i) of Chapter 30. The tribunal disagreed with this interpretation, highlighting that the Collector had misinterpreted the Tariff entry. They clarified that the Vitamin B Complex Tablets, being a formulation used to treat and prevent metabolic disturbances, satisfy the criteria of therapeutic or prophylactic use, thus meriting classification under sub-heading 3003.20 as claimed by the appellants.

In conclusion, the tribunal set aside the impugned order and allowed the appeal, ruling in favor of the appellants' classification of the Vitamin B Complex Tablets under Tariff sub-heading 3003.20.