1996 (6) TMI 129 - AT - Central Excise

Summary

Issues: Classification of the product "Anhydrous Dextrose" under sub-heading 1702.21 vs. Chapter 29, interpretation of Central Excise Tariff Act, 1985.

In this judgment, the Collector (Appeals) upheld the classification of the product "Anhydrous Dextrose" under sub-heading 1702.21 of the Central Excise Tariff Act, 1985, based on Rule 3(a) of the rules for interpreting the schedule. The appellants argued for classification under Chapter 29 and sub-heading 2913.00, citing compliance with Indian Pharmacopia standards and reliance on a Bombay High Court judgment in Tata Exports Ltd. v. Union of India. The High Court had classified Dextrose Anhydrous under Heading 2901/45 of the Customs Tariff Act, considering it a drug intermediate. The appellants provided certificates from research laboratories supporting the classification as a drug intermediate used in the manufacture of Sorbitol. The Tribunal noted the absence of contrary judgments and upheld the Bombay High Court's decision, setting aside the Collector's order.

The Learned DR contended that the Bombay High Court's judgment was not applicable to the case, emphasizing the specificity of sub-heading 1702.21 and referencing Chapter 17 Note l(b) to exclude chemically pure sugars and products of Chapter 2913. However, the Tribunal found the Bombay High Court's judgment directly relevant and binding, as there were no conflicting judgments from higher courts. Therefore, the Tribunal accepted the Bombay High Court's classification of Dextrose Anhydrous as a drug intermediate under Heading 2901/45, overturning the Collector's decision and ruling in favor of the appellants.