2004 (1) TMI 397 - SC - Central Excise

Medicament - Appellate orders - Binding nature - Appeal to Supreme Court - Tribunal is final fact finding authority

Summary

Issues:
Classification of product under Tariff Item No. 3003.20 or 3910.00.

Analysis:
1. The case involved a dispute over the classification of a product, Dimethicone, under Tariff Item No. 3003.20 or 3910.00. The Assistant Collector classified it under Tariff Item No. 3910.00, while the Collector (Appeals) classified it under Tariff Item No. 3003.20. The Tribunal reversed the Collector (Appeals) decision and classified the product under Tariff Item No. 3910.00.

2. The relevant Tariff Items were examined, specifically focusing on Heading No. 39.10 and Sub-heading 3910.00, which pertains to "Silicones in primary forms." The interpretation of "primary forms" as per Note 6 to Chapter 39 was crucial in determining the classification of the product.

3. Reference was made to a previous judgment regarding the classification of Dimethicone as a Silicone in primary form. The Tribunal disregarded this judgment, emphasizing that it was based on different tariff items. However, the court reaffirmed that Dimethicone is a "Silicone in primary form," a finding that remains binding despite changes in tariff items.

4. The central issue was whether Dimethicone could be considered a "Medicament" falling under Note 2(1)(a) of Chapter 30. The Appellant argued that the product comprised two or more constituents mixed for therapeutic use. The Tribunal disagreed, noting that the product was classified as an unmixed product in the classification list submitted by the Appellant.

5. The Tribunal's role as a final fact-finding authority was emphasized, and the court stated that interference was unwarranted unless the Tribunal's findings were perverse. Citing relevant case law, the court upheld the Tribunal's decision, dismissing the appeals and ordering no costs.

6. In conclusion, the judgment affirmed the classification of Dimethicone under Tariff Item No. 3910.00 as a "Silicone in primary form" and rejected the argument that it qualified as a "Medicament" under Chapter 30. The Tribunal's decision was upheld based on the principles of finality of fact-finding authority.