1992 (5) TMI 97 - AT - Central Excise

Summary

Issues:
Classification of product under Tariff Item 14E or Tariff Item 68, Time-barred defense for demand raised, Interpretation of definition of "drug" under the Drugs and Cosmetics Act.

Analysis:
1. Classification of product: The appellants challenged the Order-in-Original and Order-in-Appeal regarding the classification of their product, Tripartigen Plates, under Tariff Item 14E or Tariff Item 68. The authorities held that the product is a diagnostic tool for determining immunoglobins and not a drug for treatment. The appellants argued that the product falls under Tariff Item 14E as it is intended for use in the diagnosis of diseases in human beings. The Tribunal analyzed the definition of "drug" under the Drugs and Cosmetics Act and concluded that the product qualifies as a drug and should be classified under Tariff Item 14E, supporting their decision with a precedent from the Madhya Pradesh High Court.

2. Time-barred defense: The appellants contended that the demand for payment of duty was time-barred for the period from January 1982 to December 1983 as it was raised beyond six months. However, the Assistant Collector rejected this defense. The Tribunal did not delve into this issue further as the primary issue of classification was determinative of the case.

3. Interpretation of "drug" definition: The Tribunal examined the definition of "drug" under the Drugs and Cosmetics Act, which includes substances intended for diagnosis, treatment, mitigation, or prevention of diseases. They applied this definition to the product in question, Tripartigen Plates, and concluded that it falls within the definition of a drug. This interpretation influenced their decision to classify the product under Tariff Item 14E.

In conclusion, the Tribunal allowed the appeal, setting aside the impugned Orders and providing consequential relief to the appellants. The judgment focused on the correct classification of the product based on its intended use and the interpretation of the definition of "drug" under relevant legislation.