Classification of sun-screen or sun-tan preparations sold under the brand name 'metalite cream' - Central Excise - 40/89

Classification of sun-screen or sun-tan preparations sold under the brand name 'metalite cream' Circular No. 40/89 dated 4-7-1989 [From F.No. 103/9/89-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Classification of sun-screen or sun-tan preparations sold under the brand name 'metalite cream' A doubt had been raised as to whether sun-screen or sun-tan preparations sold under the brand name like 'Melalite Cream' would be classifiable under heading No. 33.04 of the new CET as sun-screen, or sun-tan preparations or under heading No. 30.03 of the new CET as 'medicaments'. The matter also came up for discussion at the South Zone Tariff Conference held at Madras on 29th and 30th May, 1989. The point was sponsored by the Collector of Central Excise, Madras. The Collector stated that the product was classified as a P or P medicine under TI 14E of the old CET prior to 28-2-1986, and under sub-heading 3003.19 after 28-2-1986. The Audit was of the view that 'melalite cream' was classifiable under TI 14F of the old CET prior to 28-2-1986 and under heading 33.04 after 28-2-1986. The Assistant Collector concerned passed an order holding that 'melalite cream' is only a P or P medicine classifiable under TI 14E prior to 28-2-1986 and sub-heading No. 3003.19 after 28-2-1986 on the ground that 'melalite cream' has curative properties and is an anti-pigmentation agent manufactured under the licence issued by the Drugs Controller as a drug and is sold by the licensed chemists and druggists on the strength of prescriptions issued by doctors for curing hyperpigmentation. Hyperpigmentation is described in Harrison's Principles of Internal Medicines as a disease. 'Melalite cream' is also recognised as a medicine by the State Sales Tax authorities, the Collector said. It was noted that, in Bombay, the same product is being classified under Chapter 33 on the basis of chemical analysis. The Chemical Examiner, Bombay, in the case of the Bombay Unit manufacturing 'melalite cream', has opined that the ingredients of 'melalite cream' have no therapeutic or prophylactic properties and their main function is depigmentation of skin and that 'melalite cream' is a sun-screen or sun-tan preparation of Chapter 33. The Conference observed that, in the HSN Explanatory Notes on page 476 under heading 33.04, it is mentioned that sun-screen or sun-tan preparations are also included in the heading 33.04. In view of this, the Conference concluded that sun-screen or sun-tan preparations sold under brand-names like 'melalite cream' are classifiable under heading 33.04, and not under heading 30.03. The Board agrees with the above views of the Conference. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. All pending assessments may be finalised on the above basis.