1999 (5) TMI 259 - AT - Central Excise

Summary

Issues Involved:
1. Classification of Mulmin drops and capsules.
2. Applicability of Chapter Heading 3003.10 vs. Chapter sub-heading 2936.00 of the Central Excise Tariff Act (CETA), 1985.

Detailed Analysis:

1. Classification of Mulmin Drops and Capsules:

The core issue revolves around the proper classification of Mulmin drops and capsules under the Central Excise Tariff Act (CETA), 1985. The revenue appealed against the Order-in-Appeal No. 47/95, which upheld the classification of these items under Chapter Heading 3003.10, contrary to the revenue's claim for classification under Chapter sub-heading 2936.00.

2. Applicability of Chapter Heading 3003.10 vs. Chapter sub-heading 2936.00:

The Assistant Commissioner, in the Order-in-Original, provided a detailed analysis, concluding that Mulmin drops and capsules should be classified under Chapter Heading 3003.10, which covers "Patent or Proprietary medicaments, other than those medicaments which are exclusively Ayurvedic, Unani, siddha, homoeopathic or bio-chemic." This conclusion was based on the composition of the products, which included vitamins and minerals such as ferrous gluconate and zinc sulphate, and the manufacturing processes involved, which align with Chapter Note No. 5 of Chapter 30.

The Commissioner, in the Order-in-Appeal, supported this classification by referencing the Drugs and Cosmetics Act and letters from the Government of India and the Drugs Controller, Government of Karnataka. These letters confirmed that Mulmin drops and capsules are considered drugs under Section 3(b) and Patent and Proprietary medicines under Section 3(h)(II) of the Drugs & Cosmetics Act.

The Tribunal noted that the Assistant Commissioner had thoroughly examined the evidence, including Chapter Notes and a Chemical Engineer's report, which indicated that the ingredients of Mulmin drops and capsules are not merely vitamins but also include other pharmaceutical necessities for therapeutic and prophylactic uses. This analysis led to the conclusion that these products should be classified under Chapter Heading 3003.10.

The Tribunal also considered a precedent involving M/s. Micronova Pharmaceuticals P. Ltd., where similar products were classified under Chapter Heading 3003.20 after a detailed examination by a three-member bench. This precedent further supported the classification of Mulmin drops and capsules under Chapter 30.

Conclusion:

Upon reviewing the submissions and records, the Tribunal found that both the Assistant Commissioner and the Commissioner had provided detailed and reasoned orders justifying the classification under Chapter Heading 3003.10. The Tribunal also noted that the grounds of appeal by the Commissioner did not address the detailed findings and evidence considered by the Assistant Commissioner. Consequently, the Tribunal upheld the classification of Mulmin drops and capsules under Chapter Heading 3003.10 and rejected the revenue's appeal, confirming the orders passed by the original and appellate authorities.