2007 (10) TMI 77 - AT - Central Excise

On basis of Chapter Notes Protyne is used as food supplement not as medicament so is classifiable under Heading 2108.90 Classification under Heading 3003.10 as P or P medicament is not justified as impugned goods has no curative effect on any disease

Summary

Issues: Classification of product 'Protyne' under Central Excise Tariff Act and applicability of Chapter Notes.

In this case, the Revenue filed an appeal against the Order-in-Appeal setting aside the Order-in-Original classifying 'Protyne' under Chapter Sub-heading No. 3003.10 as 'P or P Medicaments'. The Revenue issued a show cause notice directing classification under Chapter Sub-heading No. 2108.99 as 'food supplement'. The Deputy Commissioner found 'Protyne' to be a food supplement for prevention of protein deficiency, not a medicament. However, the Commissioner (Appeals) considered the product as a medicament due to the presence of ingredients with the word I.P. The Tribunal noted the product's use as a food supplement without curative effects for diseases, aligning with a previous judgment regarding 'Honeypro granules' classification as a food supplement under sub-heading 2108.90. The Tribunal emphasized the lack of evidence supporting 'Protyne' as a medicament, leading to the rejection of the appeal and upholding the original classification as a food supplement.

The Tribunal analyzed the product's label, usage directions, and ingredients to determine its classification under the Central Excise Tariff Act. The Tribunal referred to the Supreme Court's test for substances intended for treating diseases and disorders, emphasizing the absence of clear indications on the product label regarding disease prevention or treatment. Unlike the case cited by the Revenue, where expert opinions supported the product's classification as a medicament, 'Protyne' lacked similar evidence. The Tribunal highlighted the importance of active ingredients and disease indications for medicament classification, which were absent in 'Protyne.' The Tribunal concluded that 'Protyne' was correctly classified as a food supplement under sub-heading 2108.90, in line with Chapter Note 2 of Chapter 30 of the Central Excise Tariff Act. The absence of expert evidence, active ingredient disclosure, and disease indications led to the rejection of the Revenue's appeal and the affirmation of the food supplement classification for 'Protyne.'

Therefore, the Tribunal upheld the original classification of 'Protyne' as a food supplement under the Central Excise Tariff Act, emphasizing the lack of evidence supporting its classification as a medicament for disease treatment or prevention. The judgment highlighted the importance of active ingredients, disease indications, and expert opinions in determining the classification of products under the Tariff Act, ultimately leading to the rejection of the Revenue's appeal and the acceptance of 'Protyne' as a food supplement.