2005 (9) TMI 412 - AT - Central Excise

Summary

Issues:
1. Correct classification of the product "DIGEPLEX SYRUP" - medicaments under Heading 3003.10 or enzymes under Heading 3505.00.

Analysis:
The dispute in the present appeal before the Appellate Tribunal CESTAT, Mumbai revolves around the correct classification of the product "DIGEPLEX SYRUP." The Commissioner (Appeals) had classified the product as medicaments under Heading 3003.10, accepting the respondent's position. However, the revenue contended that the product should be classified as enzymes falling under Heading 3505.00.

Upon reviewing the impugned order by the Commissioner (Appeals), it was noted that the respondent had argued that the product was specifically formulated to aid digestion in digestive disorders and was included as medicaments in the Indian Pharmacopoeia. The appellate authority observed that the product had no test report showing it to be enzymes without curative value, and it was cleared in consumer packs known as P&P medicine. Based on these factors, the appellate authority concluded that the product falls under Chapter 30, as per the Indian Pharmacopoeia and market recognition.

In contrast, the revenue relied on Board's Circular No. 16/89 dated 6-3-1989, asserting that enzymes are classifiable under Heading 35.07. However, upon examination of the Circular, it was found that it pertained to enzymes used in bulk for specific purposes, while the product in question was packed in consumer packs, marketed as medicaments, and intended for curing digestive disorders. The appellate authority's findings were not challenged by the revenue, indicating that the Circular actually supported the respondent's classification under Chapter 30. Consequently, the revenue's appeal was rejected by the Tribunal.

This detailed analysis highlights the key arguments and considerations leading to the Tribunal's decision on the correct classification of the product "DIGEPLEX SYRUP," emphasizing the significance of the Indian Pharmacopoeia, market recognition, and the specific therapeutic purpose of the product in question.