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TMI Blog2000 (3) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Collector of Central Excise, Rajkot v. Surgichem reported in 1987 (27) E.L.T. 548 (T). The first decision held that zinc oxide adhesive plasters B.P.C. are classifiable under tariff item 14E while the second decision held that adhesive plaster B.P.C. tapes are classifiable under tariff item 68 of Central Excise Tariff and not under tariff items 14E or tariff item 60 of the said tariff. The relevant tariff headings may be reproduced below for ease of reference :- 14E. Twelve and a half per cent ad valorem - Patent or proprietary medicines not containing alcohol, opium, Indian hemp or other narcotic drugs or other narcotics other than those medicines which are exclusively Ayurvedic, Unani, Sidha or Homoeopathic. Explanation I - Patent or Proprietary Medicines means any drug or medicinal preparation, in whatever form, for use in the internal or external treatment of, or for the prevention of ailments in human beings or animals which bears either on itself or on its container or both, a name which is not specified in a monograph in a pharmacopoeia, formulary or other publications notified in this behalf by the Central Government in the Official Gazette, or which is a brand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the body so that the broken bones are kept in their proper place/alignment so that they heal in course of time. The bandages do not take part in healing as such. The learned Counsel referred us in particular to British Pharmaceutical Codex 1968 Page 977 in regard to Surgical Dressings which is reproduced below :- The monographs in this section provide standards for a number of surgical dressings, and for fibres and fabrics used in their preparation. Information is given on uses, packaging, labelling and sterilisation. The monographs are arranged in the following groups: Bandages, page 978 Adhesive Bandages, page 987 Calico, page 991 Cellulose Wadding, page 991 Cotton Wools, page 992 Gauzes, page 994 Gauze Pads, page 997 Gauze Tissues, page 998 Lints, page 999 Muslin, page 1000 Paraffin Gauze Dressing, page 1001 Self-adhesive Plasters, page 1002 Elastic Adhesive Dressing, page 1008 Plastic Wound Dressings, page 1010 Regenerated Celluloses, page 1013 Oiled Silk, page 1014 Standard Dressings page 1015 Wool, page 1021 Rayon. Where rayon is specified in the following monographs, it refers to Regenerated Cellulose or Delustred Regenerated Cellul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic self-adhesive plaster is used to secure dressings and appliances, to cover sites of infection, and for general support bandaging. Packaging. ..... Storage. ...... Labelling. ...... ZINC OXIDE SELF-ADHESIVE PLASTER Synonyms : Zinc Oxide Plaster; Adhesive Plaster. Zinc Oxide Self-adhesive Plaster consists of a suitable cloth spread evenly with a self-adhesive plaster mass containing zinc oxide. Standard Description. ...... Perforations. ........ Adhesiveness. ........ Weight of adhesive mass. ....... Content of zinc oxide in the adhesive mass. Not less than 10.0 percent, calculated as ZnO, determined by the following method : Heat gently about 1 g of the plaster, accurately weighed, with 10ml of nitric acid in a long-necked round-bottomed flask of about 30-ml capacity until the plaster has disintegrated; cool, dilute with 10 ml of water, decant the liquid on to a Buchner funnel, and wash the residue in the flask and on the filter with warm water until the washings are free from nitrate; make the combined filtrate and washings neutral to litmus paper with dilute ammonia solution, and dilute to 140 ml with water, add 10 ml of 2M sodium acetate and 5g of ammonium chloride, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icence for their manufacture from the State Drugs Controller under the above Act. These dressings can be either medicated or non-medicated. Medicated dressing having therapeutic properties can be considered as medicinal properties for the purpose of levy of Central Excise Duty . Madras Collectorate Trade Notice No. 256/79, dated 15/12/79 clarifies that absorbent cotton wool, gauzes and bandages and plaster of paris, being non-medicated and without any medicinal or therapeutic properties, would fall outside the purview of Tariff Item 14E as Patent or Proprietary Medicines". However, Medicated dressing having therapeutic properties are medicinal preparations covered by Item 14E of Central Excise Tariff." Letter F.No. 102/26/79-CX. 3, dated 11th March, 1980 of the Department of Revenue relating to classification and rate of duty on absorbant cotton wool gauzes and bandages and plaster of paris reads as under :- Sub : MEDICINES - Absorbant cotton wool Gauzes and Bandages and Plaster of Paris-Classification of under Item 14E or Item 68 Question regarding. I am directed to refer to your letter D.O.C. No. V/60/30/24/78-CX.2, dated 18th December, 1979 on the above subject. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coverage inasmuch as it includes all drugs, medicines, pharmaceuticals and drug intermediates not elsewhere specified. In the absence of a specified definition of the terminology used in the notification, we may have to place reliance on the definition as interpreted by the Supreme Court covers substances such as surgical cotton which are used for or in the treatment of human beings or animals. The matter was also referred to Drugs Controller, Director General of Health Services, New Delhi who have confirmed that Surgical Cotton (Absorbent Cotton Wool), Gauzes, Bandages and other non-medicated surgical dressings are drugs within the meaning of the definition of the term drug given in Section 3(b)(I) of the Drugs and Cosmetics Act. In view of the clear opinion by the Drugs Controllers that these are drugs, I am directed to clarify that they would rightly be entitled to exemption under Notification No. 55/75-C.E. vide Sr.No. 19 of the said Notification. 5. Based on the above pharmacopoeial standards and the clarifications issued by the Government and other tax authorities, the learned counsel submitted that the items in question are not medicated and are therefore not class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls are not made to therapeutic or curative specifications. Antiseptic or astringent qualities are not therapeutic or curative properties. Further, in view of the Apex Court s ruling that the departmental authorities cannot contradict the clarifications issued by C.B.E. C., the Central Excise Collectors cannot seek a classification contrary to the classification advised in the Government/CBEC Circulars. Viewed from that point of view also, the correct classification of these unmedicated adhesive plaster, plaster of paris bandages and adhesive tape would be under Tariff Item 68. Therefore, we hold that the items covered in all these appeals would be classifiable under Tariff Item 68 with concessional assessment as applicable to drugs and medicines under various notifications. 8. M/s. Surgichem have also filed a miscellaneous application submitting that their case remains specifically covered by the decision of the CEGAT in Order No. 727/1986-C, dated 27-11-1986 reported in 1987 (27) E.L.T. 548 (T). They have submitted that that order of the Tribunal having become final as no appeal had been filed by the Revenue, consequential relief should be granted to them pursuant to that orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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