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TMI Blog1999 (5) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... vitamin tonic) are considered as drugs under Section 3(b) and also as Patent and Proprietary medicines under Section 3(h)(II) of the Drugs Cosmetics Act. He also referred to the letter No. DCD/CR-43/Mfg.94-95, dated 10-5-1994 issued by Drugs Controller, Govt. of Karnataka, which had confirmed both these items are Patent and Proprietary medicine under licence in form 28 bearing No. SP-58/78 containing vitamins and minerals as active ingredients. No reference to the grounds and findings given by the Assistant Commissioner in his detailed Order-in-Original. The findings given by the Assistant Commissioner in his Order-in-Original para 6 are extracted hereinbelow :- I have gone through the records of the case, assessees submissions and also heard the assessee s Consultant in person. The point to be decided in the instant case is the classification of Mulmin drops and capsules whether under 2936.00 or 3003.10 of CETA., 1985. Chapter sub-heading 2936.00 reads as Provitamins are vitamins, natural or reproduced by synthesis (including natural and concentrates) derivatives thereof used primarily as vitamins, and intermixtures of the foregoing, whether or not in any solvent". Chapter s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... container that Mulmin capsules contain Zinc Sulphate and Ferrous Gluconate and vitamins Mulmin drops contain Phosphate sodium, Zinc Sulphate and Ferrous Gluconate and vitamins. In the pharmacopeia of India, zinc sulphate has been mentioned under the category of Emetic, Astringent, ferrous gluconate as Haematinic, sodium phosphate under the category of cathartic. Thus the above products contain also ingredients which are not considered as vitamin in pharmacopoeia and whose functions are different that of vitamin. Chapter Heading 29.36 of CETA covers provitamins and vitamins natural or reproduced by synthesis (including natural concentrates) derivatives thereof used primarily as vitamins and intermixtures of the foregoing, whether or not in any solvent. Thus, the products under reference being preparations containing vitamins and other ingredients may not satisfy the above criteria . In view of the above discussions, I hold that Mulmin drops and capsules are medicaments and are rightly classifiable under 3003.10 of CETA, 1985. Accordingly, I pass the following order :- Order I hereby order classification of Mulmin drops and capsules under Chaper sub-heading 3003.10 and classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal No. 107/94 before the Tribunal in Appeal No. E/5342/94-C and the Tribunal comprising of Three Members finally decided the case in the party s favour by upholding the classification of the items under Chapter sub-heading 3003.10 in terms of the Final Order No. 368/96-C, dated 31-5-1996. He produced a copy of the said order. He points out that all the points raised by the Commissioner in the appeals have already been gone into by the Tribunal and the Tribunal categorically held that the products in question as Vitamin B1, B2, B6, Niacinamide I.P. and calcium pantothenate fall only under Chapter Heading 3003.20 for the detailed reasons given thereunder. He pointed out that Tribunal also looked into HSN Notes which are relied on by the Commissioner (Appeals). He prays for upholding the said order. 7. On a careful consideration of the submissions on both sides and on a perusal of the records, we are of the considered opinion that both the authorities have gone into great detail on the aspect pertaining to the ingredients in these two products and the ingredients having placed under Pharmacopoeia of India with specific therapeutic effect. The Assistant Commissioner also noted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry `vitamins will apply and not the gental one medicaments. But the position is not so. It was the contention of the appellants before the authorities below that the former entry `vitamins covers only bulk drug and not a vitamin preparation (tablets) as theirs. This was not accepted by the Collector (Appeals) who held that there is no provision that only a bulk drug should attract the classification under 2936.20. For proper appreciation of the issue, the Chapter Notes under these two Chapters 29 30 have to be considered. The former Chapter covers organic chemicals and Chapter Note 1(a) lays down that except where the context otherwise requires the headings of that Chapter inter alia apply only to separate chemically defined organic compounds whether or not containing impurities. Applying this test, it will appear that the entry 2936.00 will cover only a separate chemically defined vitamin or intermixtures of vitamins but not a medicament or preparation in the form of tablets containing other ingredients. The appellants have contended that their product vitamin B complex tablets contain the following ingredients :- 1. Thiamine 2. Riboflavin 3. Niacintunide 4. Calcium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lex Tablets are a formulation made out of principal vitamins and other ingredients which are pharmaceutical necessities and therapeutically inert. The therapeutically inert attribute is in respect of the other ingredients and not the vitamins themselves. This mistake apart, the use of vitamin formulation in the manner satisfying the definition in the relevant Chapter note would independently clinth the matter. The Collector has referred to the Chapter Notes in the Harmonised System of Nomenclature (HSN) stating that vitamins are active agents usually of complex chemical composition which are essential for the proper functioning of the human or animal organisms and that their absence gives rise to metabolic disturbances. There is a mention that the Chapter includes vitamins and their derivaties used primarily as vitamins with compositions such as solvents, antioxidant carbothydrates and coating with appropriate substances. The words underlined do not find a mention in the tariff entry or Chapter note in the Excise Tariff and cannot be brought into play. Though the Collector had omitted to consider the entry `prophylactic which follows the word `therapeutic and has only referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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