2018 (6) TMI 432 - AT - Central Excise

Classification of goods - Hydent-K Potassium nitrate with fluoride medicated toothpaste - Whether the product namely Hydent-K Potassium nitrate with fluoride medicated toothpaste manufactured by the appellant is classifiable under Chapter sub-heading 3003.10 or 3306.10 of CETA 1985? - demand of differential duty - Held that - The decision in the case of ICPA HEALTH PRODUCTS PVT. LTD. VERSUS COMMR. OF CUS. & C. EX., VADODARA 2001 (7) TMI 531 - CEGAT, MUMBAI is squarely applicable to the facts of the present case, where the principle product is Thermoseal Toothpaste - In case of product Thermoseal, the product of IPCA, the various ingredients other than active ingredients used were 1) Enamel 2) Cementum 3) Dental pulp and dentin. Comparing the ingredients in both the products, it is observed that the principle agent is Strontium Chloride and Potassium nitrate in the product Thermoseal. In Hydent-K only pharmacopeia drugs were used like Potassium nitrate B.P. and Sodium Monofluophosphate USP. Therefore the product Hydent-K is mainly based on Pharmacopeia drug whereas in Thermoseal in addition to the principle agent, other non-pharmacopeia ingredients were also used. As per the composition of the product Hydent-K is on a better footing than Thermoseal which has been classified as medicament in the IPCA Health Products Pvt. Ltd. case. Appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of product "Hydent-K" under Central Excise Tariff Act, 1985 - Whether under Chapter sub-heading 3003.10 or 3306.10 and payment of differential duty.

In this judgment by the Appellate Tribunal CESTAT MUMBAI, the issue revolved around the classification of the product "Hydent-K" manufactured by the appellant under the Central Excise Tariff Act, 1985. The main question was whether the product falls under Chapter sub-heading 3003.10 or 3306.10, determining the differential duty payable by the appellant. The appellant did not appear but submitted written submissions, requesting to dispose of other pending appeals. The revenue representative reiterated the findings of the impugned order.

Upon analyzing the submissions, the Tribunal focused on deciding whether "Hydent-K" toothpaste is a medicament falling under sub-heading 3003.10 or a toothpaste under 3306.10. The appellant cited a previous judgment involving IPCA Health Products Pvt. Ltd., which was distinguished by the Commissioner (Appeals) based on ingredient differences. The key ingredients in "Hydent-K" were Potassium nitrate B.P. and Sodium Monofluophosphate USP, both pharmacopeia drugs, making up the main components. In contrast, the IPCA product contained Strontium Chloride and Potassium nitrate as primary agents, along with non-pharmacopeia ingredients. The Tribunal concluded that "Hydent-K" being primarily based on pharmacopeia drugs, aligned more closely with the medicament classification in the previous IPCA case, warranting the judgment's application in the present scenario. Consequently, the impugned order was set aside, and the appeals were allowed.