1992 (8) TMI 200 - AT - Central Excise

Summary

Issues:
Classification of 'Calamine I.P. and Calamine B.P.' under Central Excise Tariff Act - Whether under Heading 33.04 or Heading 28.17/28.36 or alternatively under Headings 30.03/30.05.

Analysis:
1. The appellants claimed classification of 'Calamine I.P. and Calamine B.P.' under Heading 3005.90 as pharmaceutical products. The Assistant Collector classified them under Heading 33.04, which was confirmed by the Collector (Appeals). The appellants argued that the products were essentially Zinc Oxide and Zinc Carbonate with 1% Ferric Oxide for color, making them classifiable under sub-headings 2817.10 and 2836.90. They also contended that the products, recognized in the pharmacopoeia, should be classified under Heading 3005.90. The appellants further argued that the products should be classified under sub-headings 3003.10 and 3005.90 due to their therapeutic value and drug license compliance.

2. The Tribunal examined the relevant notes of Chapter 30 and Chapter 33 to determine the classification. It was noted that Heading Nos. 33.03 to 33.07 apply to products put up with indications for use as cosmetics or toilet preparations. As 'Calamine I.P. and Calamine B.P.' were in bulk packaging without such indications, they were not classifiable under these headings. The Tribunal also ruled out classification under Chapter 28 due to the products being mixtures and not chemically defined compounds.

3. The Tribunal then analyzed the classification under Heading 30.03, considering the definition of 'Medicaments' and the nature of 'Calamine.' The products were recognized as having therapeutic value for skin diseases, manufactured in compliance with the Drugs and Cosmetics Act, and supplied in bulk for further processing or repackaging. Therefore, the Tribunal concluded that 'Calamine I.P. and Calamine B.P.' should be classified as 'Medicaments' under Heading 30.03, specifically under sub-heading 3003.30, due to their therapeutic and prophylactic uses in skin treatment.

4. Consequently, the Tribunal set aside the impugned order and classified 'Calamine I.P. and Calamine B.P.' in bulk packaging of 50 kgs. under sub-heading 3003.30. The appeal was disposed of in favor of the appellants based on the classification as 'Medicaments' under Heading 30.03.