2017 (5) TMI 326 - AT - Central Excise

Classification of goods - Oxytetracycline Hydrochloreide Capsule 500mg - classified under Chapter 3003.10 or sub heading 3003.20? - - Held that - the identical issue has been considered by the coordinate Bench of this Tribunal wherein in case of M/s. Pfizer Ltd vide Order No. A/85566/16/EB dated 13-1-2016 the product namely Oxytetracycline Hydrochloride Capsule 500mg was held classifiable under 3003.20 as medicament other than the P&P medicament therefore in the present case also the same medicine is involved therefore ratio of the aforesaid decision of this Tribunal is clearly applicable. From the label it can be said that name of the product is Oxytetracycline Capsules I.P. 500mg which is generic name and appearing in the Indian pharmacopoeia, therefore this product is not P&P Medicament by any stretch of imagination. The product in question i.e. Oxytetrcycline Capsules I.P. 500 mg is a generic medicine, other than the P&P medicament and correctly classifiable under Chapter heading 3003.20 - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of pharmaceutical goods under Chapter 3003.10 or 3003.20 based on the name and appearance of the product.

Analysis:
The case involved the classification of pharmaceutical goods, specifically Oxytetracycline Hydrochloreide Capsule 500mg, under Chapter 3003.10 or 3003.20. The appellant initially classified the goods as P&P Medicament under Chapter 3003.10. The department, however, issued a show cause notice proposing classification under subheading 3003.20 based on an earlier order and the distinction between House Mark and Trade/Brand Name as per a Supreme Court decision. The adjudicating authority confirmed the demand of differential duty, imposed penalties, and demanded interest. The Commissioner (Appeals) rejected the appeal, classifying the product under CSH 3003.10 due to the appearance of the Pfizer logo on the product.

In the appeal before the Tribunal, the appellant argued that the basis of the show cause notice was incorrect as the product in question was different from the one considered in the earlier order. The appellant contended that the product, "Oxytetracycline Capsules IP 500 mg," was listed in the Indian pharmacopoeia, making it classifiable under 3003.20. The appellant also referenced a previous Tribunal order that supported their classification argument. The Revenue reiterated the findings of the impugned order.

The Tribunal carefully considered the submissions and noted a previous decision involving a similar product where it was classified under 3003.20. The Tribunal analyzed the label of the product, noting that the name "Oxytetracycline Capsules I.P. 500mg" was generic and listed in the Indian pharmacopoeia. The Tribunal rejected the contention that the Pfizer logo on the product made it a P&P Medicament, emphasizing that the name of the product, not the house mark, determines classification. The Tribunal held that affixing the house mark did not change the generic nature of the product. The Tribunal found in favor of the appellant, setting aside the impugned order and allowing the appeal.

In conclusion, the Tribunal ruled that the product, Oxytetracycline Capsules I.P. 500 mg, was a generic medicine, not a P&P medicament, and correctly classifiable under Chapter heading 3003.20. The Tribunal emphasized that the appearance of the Pfizer logo did not alter the generic classification of the product, as per the Supreme Court's decision.