2005 (8) TMI 525 - AT - Central Excise

Summary

Issues: Classification of medicaments under Central Excise Tariff Act

Analysis:
The appeal involved the classification of two medicaments, Obroquin Injection 30 ml and Cloroquine Phosphate Injection 30 ml, under the Central Excise Tariff Act. The appellant claimed classification of the goods as patent and proprietary medicines under Heading 3003.10, while the department contended that they should be classified under Heading 3003.20 based on the Supreme Court's decision in the case of Astra Pharmaceuticals v. CCE, Chandigarh. The Commissioner (Appeals) classified the products under Heading 3003.20, citing the conspicuous display of generic names on the labels.

Upon review, the Tribunal found that the patented name "Obroquin" was prominently displayed on one product's label, while the other product lacked a house name. Disagreeing with the Commissioner's view that the generic name's conspicuous mention indicated generic medicines, the Tribunal ruled that the presence of a house name on one product's label warranted classification under Heading 3003.10 for Obroquin and under Heading 3003.20 as a generic medicine for Chloroquine Phosphate. The appeal was partially allowed for products with a house name and rejected for the product displaying only the generic name on the label, leading to their respective classifications under 3003.10 and 3003.20 of the Schedule to CETA.

This judgment clarifies the classification criteria for medicaments under the Central Excise Tariff Act, emphasizing the significance of house names and generic names displayed on product labels in determining the appropriate classification under specific headings. The decision underscores the importance of clear labeling practices in differentiating between patent and proprietary medicines and generic medicines for classification purposes, providing guidance for future classification disputes in the pharmaceutical industry.