2014 (1) TMI 50 - AT - Central Excise

Classification of Wokadine Surgical Scrub - Held that - Following assessee s own case 2003 (6) TMI 258 - CESTAT, MUMBAI - The product in question is primarily intended for and actually used for, its antiseptic properties, the classification claimed by the appellant therefore will have to be accepted - Decided against Revenue. Whether the physician s samples cleared by the respondent are entitled for duty exemption under Notification No. 48/77 - Held that - The colour, contour, type size of packing of the physician samples are same as those of regular trade packing - All the conditions for benefit of Notification No. 48/77-C.E. are not fulfilled and the same has been wrongly allowed by the Commissioner (Appeals) - Decided in favour of Revenue.

Summary

Issues:
1. Classification of "Wokadine Surgical Scrub."
2. Eligibility for duty exemption under Notification No. 48/77.

Classification of "Wokadine Surgical Scrub":
The appeal was against the order-in-appeal by the Commissioner of Central Excise (Appeals), Nagpur. The first issue revolved around the classification of "Wokadine Surgical Scrub." The Tribunal had previously decided in favor of the assessee in a similar case. The Department had appealed to the Supreme Court, but there was no stay order. Consequently, the impugned order regarding the classification of surgical scrub was upheld.

Eligibility for Duty Exemption under Notification No. 48/77:
The second dispute centered on whether physician's samples cleared by the respondent were entitled to duty exemption under Notification No. 48/77. The notification exempted physician samples from duty under certain conditions. Although the samples had the required markings and were distributed free to hospitals and medical practitioners, the Department contended that they were not packed distinctly from regular trade packing. The Commissioner (Appeals) had allowed the exemption based on the markings on the samples. However, the Department argued that the physician samples should be in packaging distinct from regular trade packing. The Tribunal found merit in the Department's argument, stating that the conditions for the exemption were not fully met. As a result, the impugned order granting exemption under Notification 48/77 was set aside, and the original Adjudicating Authority's decision was restored.

In conclusion, the Revenue's appeal was partly allowed, with the Tribunal ruling in favor of the Department regarding the eligibility for duty exemption under Notification No. 48/77.