9911796707
TMI Blog1993 (1) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... imed by the appellants in terms of exemption Notification No. 31/88-C.E., dated 1-3-1988. The department s plea is that Lactose is classifiable under Chapter Heading 1702.19 of the Customs Tariff Act, 1985 and as such, the lower authorities have rejected their claim on the ground that the exemption is made applicable only to those items falling under Chapter Headings 28, 29 and 30 as stipulated in the said notification. The appellants claim is that the item Lactose BP/USP imported by them, is a Bulk Drug as certified by the Drug Controller of India, New Delhi and that all bulk drugs fall under Chapter Heading 28 or 29 only. It is claimed that the item Lactose BP/USP is being used as an ingredient in manufacturing tablets and capsules. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding. The certification by Drugs Controller that the said Lactose is a bulk drug is not material since CEN 31/88 extends the concessional duty only to goods falling under Chapter 28, 29 or 30. Thus there is a conscious exclusion of bulk drugs falling under any other headings from the purview of the said CE notification. In view of the above findings, the order of the original authority is upheld and the appeal rejected as inadmissible." 3. We have heard Shri Vaidya Lingam, learned advocate for the appellants and Smt. Vijay Zutshi, learned CDR for the respondents. The learned advocate has relied on the certificate issued by the Drug Controller dated 9-1-1987, to the effect that among other items, Lactose IP/BP/USP are eligible for exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stereoisomeric, it yields a mixture of D-glucose and a sugar D-galactose which is a stereoisomer of glucose." He also referred to the definition of Lactose appearing at page 686 of Hawley s Chemical Dictionery. He produced the extracts from Martindale, The Extra Pharmacopoeia, Twenty-eighth Edition, Edited by James E.F. Reynolds and referred to item at page 582-g which is Anhydrous Dextrose . Referring to these two definitions, he stated that Lactose is also referred as D-Glucose and the Hon ble Bombay High Court in Tata Exports Limited v. Union of India [1989 (43) E.L.T. 245 (Bom.)] has held that Dextrose Anhydrous is classifiable under Heading 29.01/45 of the Customs Tariff Act, 1975 and not under Heading 17.02 and, therefore, the Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompounds whether or not containing impurities would fall under Chapter 29. 4. Mrs. V. Zutshi, learned CDR appearing for the department, defined the order and contended that even if the item Lactose is a chemically defined organic compound but still it would fall under Chapter Heading 1702 as Note 1(b) does not exclude Sucrose, Lactose, Maltose, Glucose and Fructose. Heading 1702.10 specifically refers to Lactose and lactose syrup and Heading 17.02 refers to other sugars including chemically pure lactose, maltose, glucose and fructose in solid form. She also pointed out that Chapter Heading 2940.00 refers to sugar, chemically pure, other than sucrose, lactose, maltose, glucose and fructose. In view of these chapter notes of specific exclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the erstwhile Tariff. Even in the case of Atul Products Ltd., the classification pertained to erstwhile tariff. She pointed out that as per the Interpretative rules, the goods which are specifically classified in the heading by virtue of Chapter notes, are to be preferred to headings providing a more general description. 5. We have carefully considered the submissions made by both the sides and have perused the material on record. The claim of the appellants is that the item should be classified under Chapter Heading 29 as the item is an organic chemical compound and Chapter 29 is more specific entry than Chapter 17. The learned CDR has relied on Chapter Note 1(b) of Chapter 17 which reads - This Chapter does not cover : Chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the materials or the substances contained in mixed or composed compounds or to part only of the items in a set, those headings are to be regarded as equally specific in relation to those goods even if one of them becomes a more complete or precise description of the goods. As can be seen from the reading of the Chapter Notes, the item in question has been specifically included in Chapter 17 and Chapter Heading 2940 excluded Lactose. Therefore, the classification admitted by the lower authorities under Heading 1702.19 CET is a correct classification. The notification in question specifically referred to drugs falling under Chapter 28, 29 or 30 as the case may be. As the item is held to be falling under Heading 1702.19 CET, the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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