2006 (1) TMI 302 - AT - Central Excise

Summary

Issues: Classification of product protyne under Chapter Heading 3003.20 as P & P Medicaments or under head 21.08.99 as fortified food supplements.

In this case, the issue at hand was the classification of the product protyne. The Commissioner (A) upheld the appellant's contention that protyne is intended for prophylactic use, manufactured under a license issued by Drugs and Control Administration, and should be classified under Chapter Heading 3003.20 as P & P Medicaments. The Revenue, on the other hand, argued that protyne is fortified food supplements enriched in vitamins for nutritional benefit, not for prophylactic use, and should be classified under head 21.08.99. The Revenue was aggrieved by the Commissioner's decision and appealed.

Upon examination, the Tribunal found that the Commissioner (A) had considered the evidences and the license issued by Drugs Authorities. The Commissioner concluded that protyne is indeed intended for prophylactic use and classified it as P & P Medicaments, a decision supported by a previous judgment in Natco Pharma Ltd. v. CCE, Hyderabad. This judgment upheld the classification of a similar product as SP & P medicaments, not as a food supplement. The Tribunal, therefore, found no merit in the Revenue's appeal and rejected it.

The judgment highlights the importance of considering the intended use and the classification criteria set forth by the Drugs Authorities in determining the classification of products like protyne. The decision also emphasizes the precedential value of previous judgments in similar cases, providing guidance for consistent classification of products in the pharmaceutical and nutritional sectors.