2005 (8) TMI 506 - AT - Central Excise

Summary

Issues: Classification of 'Magnical Tablets' under chapter sub-heading 3003.10 as P&P medicine or under sub-heading 2108.99 as an edible preparation not elsewhere specified.

Analysis:
1. Classification Dispute: The appellant manufactured 'Magnical Tablets' and classified them as P&P medicine under chapter sub-heading 3003.10, used for preventing pre-eclampsia and treating metabolic disorders in pregnant and lactating women. The Department sought to classify the product under sub-heading 2108.99 as an edible preparation. The Commissioner (Appeals) upheld the Department's classification, leading to the appeal.

2. Observations: The Tribunal noted that the tablets were manufactured under a license issued by the Drugs & Cosmetics Act, sold by chemists, and taken in prescribed doses. Despite these characteristics, the lower authority considered the tablets as a potentiated calcium supplement promoting maternal health, hence classifying them as a food supplement under sub-heading 2108.99.

3. Legal Interpretation: The Tribunal referred to Chapter Note 9 of Chapter 21 and Note 10 of sub-heading 2108.99 to understand the classification criteria. It was emphasized that products with therapeutic or prophylactic uses fall under Chapter 30, not under edible preparations. The presence of therapeutic qualities, supported by certificates from medical practitioners, indicated the tablets' medicinal nature.

4. Supreme Court Precedent: Citing the Supreme Court's ruling in Alpine Industries, the Tribunal highlighted the importance of Section Notes, Chapter Notes, and Heading Notes in determining classification. While acknowledging that medical certificates alone do not dictate classification, the specific use of the tablets by medical practitioners for treating conditions like high blood pressure reinforced their medicinal classification.

5. Decision: After thorough analysis, the Tribunal allowed the appeal, setting aside the Commissioner (Appeals)'s order. The contention that 'Magnical Tablets' should be classified as 'other' edible preparation was rejected, affirming their classification as P&P medicine under chapter sub-heading 3003.10.