2013 (11) TMI 754 - AT - Customs

Stay application - Waiver of pre deposit - Classification - Import of saccharomyces Boulardii - Held that - The imported goods is, admittedly, yeast which is appropriately classifiable under Heading 2102 of the Schedule to the Tariff Act - The claim of the appellant to classify the goods as medicament under Heading 3003 by reason of Note 1 (f) to Chapter 21 is apparently hit by the terms of the Note itself inasmuch as, for exclusion of the product from the ambit of Chapter 21, it should be shown that the imported item was put up as a medicament at the time of importation itself - no prima facie case exists for the appellant and they should make reasonable predeposit under Section 129E of the Customs - Following decision of Kasturi Foods & Chemicals Vs CCE Bangalore 1994 (12) TMI 208 - CEGAT, NEW DELHI - Stay denied.

Summary

Issues:
Classification of imported goods under Customs Tariff Act, claim of classification as "medicament" under Heading 3003, applicability of Note 1 (f) to Chapter 21, relevance of test report from foreign manufacturer, requirement of predeposit under Section 129E of the Customs Act.

Classification of imported goods under Customs Tariff Act:
The appellant sought waiver and stay regarding Customs duty demanded for goods declared as "saccharomyces Boulardii" in the Bill of Entry under Heading 2918, while the authorities alleged the goods to be "yeast" under Heading 2102. The Tribunal found that the imported goods were indeed "yeast," classifiable under Heading 2102, as per the Central Excise Act precedent.

Claim of classification as "medicament" under Heading 3003:
The appellant claimed classification as "medicament" under Heading 3003, arguing the goods were meant for sale as a medicament. However, the Tribunal noted that the claim was not supported by evidence that the goods were "put up as a medicament" at the time of importation, as required by Note 1 (f) to Chapter 21.

Applicability of Note 1 (f) to Chapter 21:
The Tribunal highlighted that to exclude the product from Chapter 21, it must be demonstrated that the imported item was "put up as a medicament" at the time of importation. The appellant's claim failed to meet this criterion, leading to the rejection of their classification as a medicament under Heading 3003.

Relevance of test report from foreign manufacturer:
The appellant presented a test report from the foreign manufacturer to support their claim. However, the Tribunal deemed this report inconclusive and insufficient to substantiate the appellant's classification as a medicament under Heading 3003.

Requirement of predeposit under Section 129E of the Customs Act:
Since no prima facie case existed for the appellant, the Tribunal directed them to make a reasonable predeposit of Rs.10,00,000 within a specified period. Compliance with this directive would result in a waiver and stay in respect of the balance amount of duty, as per Section 129E of the Customs Act.