2008 (3) TMI 152 - AT - Central Excise

Caloshell - product is a formulation which mainly contains calcium carbonate from an organic source (oyster shell) in which vitamin D is added whether it is medicament or vitamin or inter-mixture of vitamin - even if it is accepted that the drug is basically a vitamin, since it is administered in measured doses as prescribed by the physician and licensed as drug under FDA Act it has to be considered as a medicament only classifiable under SH 3003.10 as medicament, not under SH 2936

Summary

Issues: Classification of product 'caloshell' under Chapter Heading 3003.10 or 2936.00

Analysis:
1. The appellant claimed that 'caloshell' should be classified as a medicament under Chapter Heading 3003.10, not as a vitamin under Chapter Heading 2936.00.
2. The appellant argued that 'caloshell' contains calcium carbonate and vitamin D3, approved by the Food and Drugs Authority for pediatric use, meeting the definition of a drug under the Drug and Cosmetics Act, 1940.
3. The appellant referenced the Indian Pharmacopoeia 1996 to establish the equivalence of 40000 units to 1 mg and the recommended dosage for the product.
4. The appellant relied on various judicial decisions to support the classification of similar products as medicaments under Chapter 30.
5. The Department argued that 'caloshell' lacks therapeutic or prophylactic value as it does not cure any disease, and therefore should be classified as a vitamin under Heading 2936.00.
6. The Department contended that the product's ingredients, calcium carbonate, and vitamin D3, do not individually have therapeutic value.
7. The Tribunal noted that 'caloshell' is licensed as a drug under the Drug and Cosmetics Act, 1940, and is intended to cure deficiencies of calcium and vitamin D in children, specifically for treating rickets.
8. The Tribunal referenced a previous case involving a similar product, holding it as a medicament, and cited other tribunal decisions classifying vitamins in capsule form as medicaments.
9. The Tribunal concluded that even if 'caloshell' is considered a vitamin, due to its measured doses, physician prescription, and FDA approval as a drug, it should be classified as a medicament under Chapter Heading 3003.10.
10. The Tribunal set aside the Commissioner (Appeals) order and allowed the appeal, classifying 'caloshell' as a medicament under Chapter Heading 3003.10.

This detailed analysis of the judgment provides a comprehensive understanding of the classification issue and the reasoning behind the decision to classify the product 'caloshell' as a medicament under Chapter Heading 3003.10.