1992 (3) TMI 316 - AT - Central Excise

Summary

Issues: Classification of product 'Amino Globin' under Tariff Item 14E instead of 1B; Admissibility of benefit under Notification No. 17/70, as amended

The judgment by the Appellate Tribunal CEGAT, New Delhi addressed the appeal filed by the appellants dissatisfied with the classification of their product 'Amino Globin' under Tariff Item 14E instead of 1B by the authorities below. The appellants, engaged in the manufacture of Prepared and Preserved Foods, claimed full exemption under Notification No. 17/70, dated 1-3-1970, as amended by Notification No. 98/81. The counsel for the appellants argued that previous Tribunal judgments favored similar products under Tariff Item 1B, relying on cases such as M/s. Indo-Pharma Pharmaceutical Works Ltd. v. Collector of Central Excise, Bombay, and Collector of Central Excise & Cus., Pune v. Li Taka Pharmaceuticals Limited. The Deputy Chief Chemist's report suggested seeking the Drug Controller's opinion on the product's classification as either P & P Medicines under 14E or food. The Drug Administrator's opinion indicated the product could be marketed as a food article, not falling under the Drugs and Cosmetics Act, 1944. The counsel urged for classification under Tariff Item 1B based on these precedents.

In response, the JCDR for the respondent did not contest the classification of the product but raised concerns over the admissibility of the benefit under the notification, citing the case of Collector of Central Excise v. Parle Exports (P) Ltd. Both parties agreed that the case should be remanded for a decision on the exemption under the notification, given the agreement on the classification under Tariff Item 1B. The Tribunal, after reviewing the previous Tribunal decisions with similar manufacturing processes, classified 'Amino Globin' under Tariff Item 1B. The Tribunal directed the case to be sent back to the Assistant Collector of Central Excise, Bombay, for determining the appellants' claim under Notification No. 17/70 within three months, ensuring the principles of natural justice are followed.

In conclusion, the appeal was allowed by remand for further proceedings regarding the benefit under the notification, while the classification of 'Amino Globin' was settled under Tariff Item 1B based on the Tribunal's findings and precedents.