2004 (7) TMI 445 - AT - Central Excise

Summary

Issues: Classification of items Iteol-3 and New Iteol-3 under Chapter Heading 3003.10 or 3808.90.

The judgment involves a dispute regarding the classification of items Iteol-3 and New Iteol-3 under Chapter Heading 3003.10 or 3808.90. The appellants argue for classification as medicaments under Chapter Heading 3003.10, while the Department classifies them under Heading 3808.90 as 'insecticides, rodenticides, fungicides, herbicides, anti-sprouting products, plant-growth regulators, disinfectants, and similar products.' The appellants contend that the items are used for sterilization purposes by surgeons, as well as for disinfecting sick rooms and floors, similar to dettol, which is classified as a medicament under Heading 3008. They rely on a Supreme Court judgment regarding a similar product with therapeutic properties, arguing that the items are antiseptic and should be classified as medicaments.

The counsel representing the appellants seeks a reversal of the classification under Chapter Heading 3003.10, emphasizing that the items are not intended for use on plants like the products listed under Chapter 3808. They argue that since the items serve antiseptic purposes for human beings, they should not be considered in the same category as insecticides meant for plants.

Upon careful consideration, the Tribunal observes that the items in question are used for disinfecting surgeons' hands, instruments, and as sprays for sick rooms and floors. The items meet IP standards for medicaments and are intended to destroy infectious germs and microorganisms for antiseptic purposes, not for disinfecting plants like insecticides. Citing a Supreme Court judgment involving similar products used for skin disinfection and wound cleansing, the Tribunal concludes that the items should be classified under Chapter Heading 3003.10 as medicaments, not under 3808.90 as disinfectants for plants. The Tribunal finds that the authorities below misapplied the principles of classification and directs the items to be classified as medicaments under 3003.10, setting aside the previous orders and allowing the appeal with any consequential relief.