1996 (4) TMI 236 - AT - Central Excise

Summary

Issues:
Classification of "Sulphacetamide Eye Drops B.P.L. 20%."
1. Classification Issue:
The appeal concerns the classification of "Sulphacetamide Eye Drops B.P.L. 20%." The appellants argue that their products should be classified under Heading 3003.20, while the Revenue contends that they should be classified under sub-heading 3005.00 due to being cleared in "Medicine Kits."

2. Original Proceedings and Appeal:
The Deputy Collector initially accepted the appellants' classification under sub-heading 3003.20, resulting in the dropping of proceedings. However, the Revenue appealed this decision, arguing that the products, being part of "Medicine Kits," should be classified under sub-heading 3005.00. The Collector (Appeals) allowed the Revenue's appeal based on the packaging in corrugated boxes.

3. Chapter Note 3 Application:
The appellants argue that Chapter Note 3, which classifies first aid boxes and kits under sub-heading 3005.00, does not apply to their products as they are not first aid medicines. They highlight that the classification under sub-heading 3005.00 was introduced during the review proceedings and was not part of the original classification notice.

4. Decision and Rationale:
The Tribunal found that the appellants were not given notice regarding the proposed classification under sub-heading 3005.00 during the original proceedings. As a result, the Collector (Appeals) decision to classify the products under sub-heading 3005.00 was deemed unsustainable. The Tribunal set aside the order-in-appeal for the specific period in question but allowed the Department to pursue correct classification for other periods.

5. Conclusion:
The judgment emphasizes procedural fairness, highlighting that parties must be duly notified of proposed classifications to defend their positions adequately. The decision underscores the importance of adherence to procedural requirements in classification disputes and ensures that due process is followed in such matters.