2015 (12) TMI 1150 - SC - Customs

Classification - whether the Virginiamycin imported under brand name STAFAC 1000 is classifiable under Customs Tariff Heading 2941.90 and Central Excise Tariff Heading 2941.90 or under Customs Tariff Heading 2309.90 and Central Excise Tariff Heading 2302.00 - Held that - Insofar as the judgment in Tetragon Chemie Pvt. Ltd. is concerned, which was upheld by this Court, it pertains to two competent classifications, i.e., 29/36 as Vitamins or 23.09/23.02 as preparation of a kind used in animal feed. In that case, the product was a premix, the additional items in the product were calcium carbonate, benzene, dextrose, lactose, yeast, soya flour etc. On the other hand, in the present case, imported goods Virginiamycin is a well defined chemical of 100% purity with anti bacterial properties included specifically under Chapter 29 by virtue of Chapter Note 1(a). The judgment of Tetragon Chemie Pvt. Ltd. has, therefore, no application to the facts of the present case. - Decided in favour of revenue.

Summary

Issues:
Classification of Virginiamycin under Customs and Central Excise Tariff Headings.

Analysis:
The Supreme Court considered the classification of Virginiamycin imported under the brand name STAFAC 1000 under Customs Tariff Heading 2941.90 and Central Excise Tariff Heading 2941.90 versus Customs Tariff Heading 2309.90 and Central Excise Tariff Heading 2302.00. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had relied on a previous judgment in the case of Tetragon Chemie Pvt. Ltd. & Ors. v. CCE, which was upheld by the Court. However, the Department challenged this decision, arguing that the Tetragon Chemie Pvt. Ltd. judgment was not applicable in the current scenario. The Department contended that the CESTAT overlooked the classification of the products under sub-heading 2941.90 of the Central Excise Tariff as opposed to sub-Heading 2302.00 for premix animal feed. This argument was supported by a previous judgment in the case of Pfizer Ltd. v. Commissioner.

The Court found merit in the Department's submission, noting that the Tetragon Chemie Pvt. Ltd. judgment dealt with different classifications, specifically 29/36 as Vitamins or 23.09/23.02 as preparations used in animal feed. In that case, the product was a premix containing various additional items. In contrast, Virginiamycin in the present case was a well-defined chemical of 100% purity with antibacterial properties, classified under Chapter 29. The Court concluded that the Tetragon Chemie Pvt. Ltd. judgment was not applicable to the current case due to the distinct nature of the imported goods.

Consequently, the Court allowed the appeals and set aside the CESTAT's order, ruling in favor of the Department's classification of Virginiamycin under the specified Customs and Central Excise Tariff Headings.