2004 (10) TMI 400 - AT - Central Excise

Summary

Issues involved:
Demand of duty based on a Ministry of Health notification for medicaments classified under different tariff headings; Confirmation of duty demand, penalty, and interest imposition; Classification of medicaments with fixed dose combination of Vitamins B1, B6, and B12 under Chapter 30 or Chapter 29.36; Discrepancy in classification decisions by different CESTAT benches necessitating resolution by a Larger Bench.

Analysis:

The case revolves around the demand of duty on medicaments, specifically Aneudox-12 Forte Injections and Tablets containing Vitamins B1, B6, and B12, based on a Ministry of Health notification. The dispute arises from the classification of these products under different tariff headings, with the Ministry's notification impacting the classification. The appellants claimed classification under Sr. No. 3003.10 of the Tariff, while a Show Cause Notice proposed classification under S.H. No. 2936.00 due to the Ministry's prohibition on the fixed dose combination of the mentioned vitamins for human use. The Commissioner upheld the duty demand, imposed penalties under Section 11AC, and ordered interest payment, leading to the appeal.

The classification issue of medicaments with fixed dose combinations of Vitamins B1, B6, and B12 under Chapter 30 or Chapter 29.36 has been contentious. Different CESTAT benches have provided conflicting decisions on this matter. The Western Zonal Bench in Mumbai classified the products under Chapter 30, while the Northern Bench in New Delhi classified them under Heading 29.36, emphasizing the lack of therapeutic justification for the products. This discrepancy in classification decisions necessitates a resolution by a Larger Bench to address the conflicting views and provide clarity on the appropriate classification.

Given the divergence in classification decisions by different CESTAT benches, the matter requires resolution by a Larger Bench to address the dispute. The Registry is instructed to present the case before the Honorable President of CESTAT to constitute a Larger Bench for determining the classification of Aneudox-12 Forte Injections and Tablets containing fixed dose combinations of Vitamins B1, B6, and B12 under either S.H. No. 3003.10 or 2936.00. This step is crucial to reconcile the conflicting interpretations and establish a consistent classification approach for such medicaments, ensuring clarity and uniformity in the application of tariff classifications.