2005 (2) TMI 303 - AT - Central Excise

Summary

Issues:
Classification of "Vitamin B Complex Injection with Liver Extract" under CSH 3003.10 as Patent or Proprietary Medicaments or under CH 29.36 as Pro Vitamins and Vitamins.

Analysis:
The appeal was against OIA No. 15/1998 passed by the Commissioner (Appeals), Hyderabad, regarding the classification of the product. The Supreme Court remanded the matter to the Tribunal for deciding on merits. The key issue was whether the product should be classified as Patent or Proprietary Medicaments under CSH 3003.10 or as Pro Vitamins and Vitamins under CH 29.36. The appellant claimed the former, while the Revenue argued for the latter.

The learned Advocate for the appellant presented various arguments to support the classification as Patent or Proprietary Medicaments. These included the ingredients being mentioned in the Indian Pharmacopoeia, manufacturing under a Drug Licence, and certification from a Veterinary Assistant Surgeon regarding the use for curing deficiency diseases. Additionally, references from standard books on 'Animal Medicine' were provided to show the medical use of the Vitamin injections for treating animal diseases.

Several case laws were cited in support of the appellant's classification, emphasizing that multi-vitamin formulations with specific substances are classifiable as P&R Medicaments. The learned JCDR admitted that most case laws favored the appellant's position.

The Tribunal analyzed the submissions and evidence presented. Referring to information from a book on "Large Animal Internal Medicine," it was concluded that the product should be classified as P&P Medicaments rather than Vitamins. The certification from the veterinary surgeon, the Drug Licence issued by the A.P. Government, and the Department's own classification for a later period supported this decision. The Tribunal found that the ingredients were listed in the Indian Pharmacopoeia, further strengthening the classification as P&P Medicaments under CSH 3003.10. Consequently, the appeal was allowed, and the impugned order was set aside in favor of the appellant.