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TMI Blog2010 (6) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... department for another period (April, 1998 to February, 1999). In both the appeals the dispute relates to classification of two products namely: "Vitcofol Syrup with Iron" and "Vitcofol Drops". For the period April, 1997 to March, 1998, the lower authorities classified both the items under Heading 29.36 (SH 2.936.00) of the First Schedule to the Central Excise Tariff Act and the assessee (appellant) wants both the items to be classified as medicaments under Heading 30.03 (SH 3003.10) of the said Schedule. For the period April, 1998 to February, 1999, the lower appellate authority set aside the order-in-original and allowed the claim of the assessee for classification of both the items under SH 3003.10 and hence the Revenue's appeal. 2. It is not in dispute that "Vitcofol Syrup with Iron" and "Vitcofol Drops" have the following compositions : Vitcofol Syrup with Iron Vitcofol Drops Each 5 ml (approx. teaspoon full) contains: Ferrous Fumarate I.P. 100 mg Folic Acid I.P. 0.5 mg Each 5 ml (approx. teaspoon full) contains: Folic Acid I.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the learned consultant that each item of goods under classification is composed of a mixture of the active ingredients shown on its label admixed with the required excipients. It is submitted that the vitamins contained in each item of goods were present in such dosage as was required under the Drugs and Cosmetics Rules to have therapeutic value for the patient. In this connection, the learned consultant has referred to a literature on vitamins available on record ("Pharmacology and Pharmacotherapeutics" by R.S. Satoskar and S.D. Bhandarkar) and also to the "Standards for Patent or Proprietary Medicines" given in Schedule V to the Drugs and Cosmetics Rules, 1945. It has been argued that, in terms of these standards prescribed under tire Drugs and Cosmetics Act Rules, the goods in question are liable to be classified as medicaments on account of the presence therein of active ingredients with therapeutic properties. The learned consultant has also shown us a list of dosages prescribed for the various vitamins, both for adults and children, under the Drugs and Cosmetics Rules. It is submitted that the dosages mentioned on the product labels tally with the dosages mentioned against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he drug licence held by the assessee. In any case, according to the SDR, the heading which provides the specific description for the goods should be chosen for classification of the subject goods. He has also reiterated the grounds of the Revenue's appeal. 7. We have given careful consideration to the submissions. It is not in dispute that the assessee was holding a drug licence for manufacture of both the items. The classification of the goods under the CETA Schedule has, however, to be done in terms of the provisions of the relevant heading in the Tariff. SH 3003.10 is a heading for Patent or Proprietary medicaments, other than those medicaments which are exclusively Ayurvedic, Unani, Siddha, Homoeopathic or Biochemic. The term medicaments as defined under Note 2 to Chapter 30 means goods (other than foods or beverages such as dietetic, diabetic or fortified foods, tonic beverages) not falling within Heading 30.02 or 30.04 which are either : (a) products comprising two or more constituents which have been mixed or compounded together for therapeutic of prophylactic uses; or (b) unmixed products suitable for such uses put up in measured doses or in packings for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... weetened water, cereals, soups, deserts or any other liquid or semi-liquid food" Thus the very declaration on the product label given by the assessee is enough to rule out Vitcofol Drops as a medicament. Admittedly, it is a mixture of vitamins. The learned counsel has also submitted that it contains excipients also, for which, however, he has not claimed any prophylactic or therapeutic property. HSN Explanatory Notes under Heading 29.36 indicate that vitamins are only exogenous biocatalysts. These explanatory notes do not attribute any prophylactic or therapeutic property to any vitamin or any mixture of vitamins. The description of goods given under Heading 29.36 of the CETA Schedule fits well for Vitcofol Drops manufactured by the assessee during the material period and we classify the product accordingly. 10. Learned consultant has referred to the Hon'ble Supreme Court's decision in the case of Capsulation Services Ltd. (supra). It was held in the said case that medicaments had been expressly excluded from the purview of Tariff Heading 29.36. It would mean that a mixture of vitamins with no prophylactic or therapeutic value must remain within the purview of Heading 29. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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