1999 (2) TMI 138 - AT - Central Excise

Summary

Issues: Classification of medicaments under Chapter Heading 3003.20 or 3003.10

Analysis:
1. The appeal was filed by the Revenue against the Order-in-Appeal passed by the Collector (Appeals), Central Excise, Pune, regarding the classification of medicaments by the respondents.

2. The respondents claimed classification under Chapter Heading 3003.20, but the adjudicating authority modified it to Chapter Heading 3003.10, treating the medicaments as P & P medicaments due to the distinct printing of "Q-max" on the label, establishing a clear relationship with the product and the manufacturer.

3. The Revenue argued that the use of "Q-max" in red ink and the address in blue ink on the label indicated a connection between the medicine and the manufacturer, making it classifiable under Chapter Heading 3003.10. The appeal was prayed to be allowed.

4. The respondents' consultant contended that printing the manufacturer's name in plain block letters was a statutory requirement, and the use of two colors did not create an association between the product and the manufacturer. Referring to a Supreme Court decision, it was argued that only the house mark was printed on the label, not a trademark.

5. The Tribunal noted that the impugned order held that printing the manufacturer's name in red and address in blue ink did not make the medicaments P & P medicines. It was observed that the word "Q-max" on the label was not a distinctive mark establishing a relationship between the medicine and the manufacturer, as per the Supreme Court's decision distinguishing between house mark and product mark.

6. Referring to the Supreme Court's distinction between house mark and product mark, the Tribunal emphasized that the former is used on all products of the manufacturer, while the latter identifies each product separately. As the word "Q-max" did not establish a relationship between the medicine and the manufacturer, the appeal by the Revenue was rejected based on the Supreme Court's precedent.

This detailed analysis of the judgment clarifies the classification issue of medicaments under specific Chapter Headings based on the distinct labeling and the interpretation of the relationship between the product and the manufacturer as per legal precedents.