2018 (3) TMI 777 - AT - Customs

Classification of imported goods - Hormones Levonorgestrel - Ethinyl Estradiol - whether the goods in question is classifiable under Heading 3006 6010 as claimed by the appellant or under Heading 2937 2300 as contended by the Department? - Held that - heading 3006 6010 is not for the basic hormones but it is meant for preparation of chemical contraceptives based on hormones. Therefore the product falling under Chapter heading 3006 is a preparation which is one step ahead of basic hormones and the basic hormones are correctly classifiable under heading 2937. The product imported by the appellant is basic hormones which is used as ingredients for further manufacturing of chemical contraceptive preparations based on hormones. Therefore the product imported by the appellant is hormone and not a preparation. Accordingly the correct classification is heading 2937 2300. Appeal dismissed - decided against appellant.

Summary

Issues: Classification of imported goods under Customs Tariff - Heading 3006 6010 or Heading 2937 2300

In this case, the primary issue revolved around the correct classification of the imported goods under the Customs Tariff. The appellant claimed that the goods, Hormones Levonorgestrel and Ethinyl Estradiol, should be classified under Heading 3006 6010 as chemical contraceptive preparations based on hormones. On the other hand, the Department contended that the goods should be classified under Heading 2937 2300 as basic hormones. The key question was whether the imported goods were chemical contraceptive preparations or basic hormones.

The appellant's counsel argued that the goods were chemical contraceptive preparations and should be classified under Heading 3006 6010 based on the principle that the most specific description should prevail over more general descriptions according to Rule 3(a) of the General Rules for Interpretation of Customs Tariff. They emphasized that the Tariff Heading 3006 6010 specifically covered chemical contraceptives based on hormones, making it the correct classification.

On the contrary, the Revenue's representative asserted that the imported goods were basic hormones, not chemical contraceptive preparations. They highlighted that the appellant used these hormones to manufacture chemical contraceptive preparations marketed under a specific brand name. The distinction between the two tariff headings, 3006 and 2937, was pointed out, with 3006 being for preparations and 2937 for basic hormones. Therefore, they argued that the correct classification for the imported goods was under Heading 2937 2300.

Upon careful consideration, the Tribunal examined both Tariff entries, emphasizing that Heading 3006 6010 was specifically for chemical contraceptive preparations based on hormones, while Heading 2937 2300 covered basic hormones. The Tribunal concluded that the imported goods were basic hormones used as ingredients for manufacturing chemical contraceptive preparations, making them correctly classifiable under Heading 2937 2300. They reasoned that classifying basic hormones under Heading 3006 6010 would render the entry under 2937 redundant, which was not the intended interpretation of the Customs Tariff.

Ultimately, the Tribunal upheld the impugned order, dismissing the appeal and confirming the classification of the imported goods under Heading 2937 2300 as basic hormones. The judgment was pronounced on 31.01.2018, with detailed reasoning provided for the classification decision.