1990 (7) TMI 222 - AT - Central Excise

Summary

Issues: Classification of liver extract under Central Excise Tariff Act, 1985

Analysis:
1. Facts and Background: The Collector of Central Excise, Hyderabad filed appeals against orders passed by the Collector of Central Excise (Appeals), Madras in favor of two respondents who manufacture 'Liver Extract' products. The respondents claimed classification under Heading 30.03 CETA, 1985, while the original orders classified the goods under Heading 30.01 CETA.

2. Appellant's Arguments: The Assistant Collector argued that the product, predominantly consisting of solid liver content, does not meet the criteria for classification as a medicament under Heading 30.03. He contended that the product should be classified under Heading 30.01, which covers glands or other organs of animal origin prepared for therapeutic or prophylactic uses. The appellant stressed the importance of considering Tariff Headings, Chapter Notes, and Section Notes for classification.

3. Respondent's Arguments: The respondent's consultant emphasized that the product had been approved by the Drug Controller as bulk drugs and argued that end-use is not relevant for classification. Referring to a case law, the consultant contended that it is the department's burden to prove classification under Heading 30.01. Additionally, the consultant highlighted a Trade Notice issued by the Hyderabad Central Excise Collectorate regarding classification of heparin injection.

4. Tribunal's Decision: After considering the arguments, the Tribunal analyzed the competing classifications under Heading 30.01 and sub-heading 3003.20, along with Chapter Note 2(i) defining medicaments for Heading 30.03. The Tribunal found that the liver extract, prepared from ox liver and sold in bulk to pharmaceutical factories, did not meet the criteria for classification under Heading 30.03. The product was not supplied in measured doses or retail packings for therapeutic use but labeled for manufacturers' use only. Therefore, the Tribunal upheld the classification under Heading 30.01 CETA, setting aside the Collector (Appeals) orders and allowing the Department's appeals.

5. Conclusion: The Tribunal dismissed the cross-objections supporting the impugned orders, deeming them misconceived. The judgment clarified the classification of liver extract under the Central Excise Tariff Act, 1985, emphasizing the specific criteria for medicaments and the relevance of end-use and packaging in determining classification.